Case Study | Dynamic Pricing: Fueling Growth in Fashion Retail
CLIENT
Fashion Retail
Business
INDUSTRY
Retail
CONSULTANT ROLE
LOCATION
MENA
(Middle East, North Africa)
The Challenge
Staying Ahead in a Competitive Market
The client, a fashion retailer based in the Middle East, sought a pricing strategy consultant to explore and implement dynamic pricing initiatives to boost competitiveness.
Role of Consultport
Consultport proposed 2 candidates within 24 hours. The client interviewed both candidates and selected a former Senior Consultant at Simon-Kucher with rich pricing project experiences. The consultant started working with the client team 72 hours after the initial request.
Approach
Leveraging Analytical Tools
With conjoint analysis and segmentation modeling, the consultant looked into distinct preferences, price sensitivities, and purchasing triggers of the consumers.
The consultant also conducted market analysis to evaluate industry factors and a competitive benchmarking analysis to assess competitors’ pricing structures.
Solution
Dynamic Pricing Framework
The consultant proposed a multi-tiered pricing framework; categorizing customers into segments based on preferences, price sensitivities, and purchasing behaviors, ensuring that each segment received a pricing proposition aligned with their value perception.
Collaborating closely with the client, the consultant developed and implemented several initiatives based on the dynamic pricing framework.
Results
Enhanced Performance
Three months after the implementation of the dynamic pricing strategy, the client experienced a 5% increase in sales volume and a 3% growth in unit sales. The enhanced financial results strengthened the company’s top line and provided them with the resources for further growth.
Multi-tier
Pricing Framework
Dynamic Pricing
Strategy
Enhanced
Business Performance
The dynamic pricing strategy from the consultant was our secret weapon, helping us maximize profitability by accurately valuing our products based on market conditions.
VP, Pricing & Strategy of Fashion Retailer
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