Case Study | Developing Pricing Strategy for Consumer Products

CLIENT

Consumer Products
Company

INDUSTRY

Consumer Products

CONSULTANT ROLE

Pricing Strategy
Consultant

LOCATION

DACH Region

The Challenge

Pricing Complexity in a Competitive Market

The client, a B2C Consumer Products company, faced two key challenges within the fiercely competitive market. The company’s current pricing set-up was unable to effectively attract and retain customers, and emerging market trends indicated that consumers were becoming more sensitive to price fluctuations.

“Our pricing approach needed a fresh perspective for us to stay competitive and maintain our growth trajectory.” — Head of Pricing of Consumer Products Company

The client recognized the need for a seasoned pricing consultant with in-depth understanding of advanced pricing methodologies and tools, consumer behavior and market trends.

Role of Consultport

Consultport proposed 3 strong candidates within 72 hours. The client interviewed 2 candidates and selected a former senior consultant at Oliver Wyman. The consultant started working with the client team 1 week after the initial request.

Approach

Comprehensive Pricing Analysis

The consultant conducted in-depth analysis of the current pricing set-up. Competitive benchmarking, conjoint analysis, and value-based pricing frameworks were utilized to help identify optimal price points, understand customer preferences, and determine the perceived value of the company’s products.

“A thorough examination of current pricing practices is essential before introducing novel strategies.” — Pricing Strategy Consultant

Solution

Evaluate & Prioritize Pricing Initiatives

After the analysis phase, the consultant identified and evaluated potential pricing initiatives, including promotional bundles, loyalty pricing and competitive price matching.

After thorough discussions with the client, the consultant proceeded with a pricing strategy focused on customer loyalty and retention to maximize returns on pricing investments. The initiative was selected due to its potential to increase customer retention and alignment with the company’s customer-centric values.

Results

Clear Roadmap for Implementation

In collaboration with the client, the consultant devised a detailed roadmap with actionable steps to execute the loyalty pricing initiative, from data infrastructure upgrades to customer segmentation and pilot program launch.

Additionally, the consultant outlined best practices for the client to differentiate between products in the same category and reacting to the cost price of their products.

After full implementation of the pricing initiative, the consultant expected a 12% increase in customer retention and a 10% growth in overall revenue.