Case Study | Dynamic Pricing Strategy for B2C Consumer Goods Manufacturer

Functional Topic

Dynamic Pricing

Project Industry

Consumer Goods

Needed Support

Dynamic Pricing Consultant

Duration

3 Months

The Challenge

The client, a B2C consumer goods manufacturer, sought to develop a dynamic pricing strategy to remain competitive in the market while improving profit margins.

The company needed support to set up a pricing system that would allow its on-site team to make real-time pricing decisions based on consumer behavior, market trends, and competitor pricing. The goal was to create a pricing strategy that could be implemented quickly and scaled as the business grew.

Role of Consultport

To support the development of a dynamic pricing strategy, the client engaged Consultport, requesting a pricing expert with a strong understanding of the latest tools and processes. Within 48 hours, Consultport provided a shortlist of highly qualified consultants with extensive experience in dynamic pricing and market strategies.

The client selected a consultant with a background in top-tier consulting firms and six previous projects implementing dynamic pricing for B2C businesses. Working closely with the leadership team, the consultant’s role was to lead a comprehensive review of the client’s pricing practices and to develop a data-driven dynamic pricing strategy.

The Approach

The project began with a thorough analysis of the client’s business objectives, pricing structure, and the sensitive analysis between current prices and profitability. The consultant examined how price changes impacted sales volume and contribution margins, benchmarking also with the competitive landscape to identify opportunities for more dynamic pricing. This analysis included testing different pricing scenarios to understand consumer reactions to price changes.

The consultant then developed a comprehensive strategy. This included price optimization based on market trends, customer demand, and competitor pricing. To ensure that the on-site team could independently manage pricing decisions, new tools and processes that automated parts of the pricing workflow were introduced.

In particular, the consultant developed a real-time pricing dashboard that allowed the team to monitor market changes and adjust prices accordingly, a pricing automation system that automatically updated prices across all sales channels, and a pricing playbook to standardize how the team responded to different pricing scenarios.

The Results

The project delivered significant improvements in the client’s pricing capabilities, leading to faster pricing decisions, improved pricing consistency, better mapping of product and pricing performance, and improved team real-time data adjustments.

Faster Pricing Decisions with Real-Time Dashboard

The introduction of the real-time pricing dashboard allowed the sales team to make quicker decisions based on up-to-date market and competitor data. As a result, the time required to adjust prices was reduced, enabling the team to react faster to market changes.

Improved Pricing Consistency

With the pricing automation system in place, all price updates were implemented across both online and offline sales channels simultaneously. This process improvement resulted in a 25% reduction in pricing discrepancies, leading to a smoother customer experience and better brand perception.

Better Product and Pricing Performance Mapping

The new tools helped the team identify high-demand products and optimize prices accordingly. This led to better mapping of the high-value items and where to introduce the dynamic pricing, and the team was able to dynamically adjust prices to match market demand while protecting profit margins.

Enhanced Team Efficiency and Independence

The combination of the pricing playbook and regular pricing review meetings enabled the sales team to take full ownership of the pricing process. The team’s efficiency increased, reducing the need for managerial oversight in day-to-day pricing decisions. This shift in responsibility resulted in a significant improvement in the team’s productivity.

Pricing turned out to be a key lever for our contribution margins – we feel now closer to becoming one of the best-in-class in terms of pricing in our industry.

— Director of Pricing