Value &PricingSolutionsin FMCG

How do clientschoose

your Brandin a land of

1000000 SKUs ?

£1.59£1.81

Price/ Quality?

Image / Advertising ?

Visibility / Accessability ?

FUTURELAB

Word of Mouth /Recommendations ?

Design / Packaging ?

Promotions / Offers ?

215.3% 119.7%

54.2% 37.4%

Feature & Display

Feature Only

Display Only

TPR Only

% Increase in Case Sales (Lift)

Value /PriceFind the right Balance

ConvenienceExperience

QualityBrand

Second phase of Marketing:

Then we started talking to someone called ‘Consumer’

ConvenienceExperience

QualityBrand

Value & Pricing strategy

Results

� Sales growth

� Segment share

� Profitability / ROI

Actions

Pricing & Value levers

� Value Proposition

� Marketing Spend

� Price

� Product quality

� Promotion

Consumer

Attitudes / Calue Drivers

Consumption funnel

%

% % %

userepeat

awarenesstrial

Take a closer look…

Value Proposition

What drives Consumers’ Value Perception?

What are your product ratings vs

competition?

Perceived Value

Product Quality

Brand/Image

Service /Experience

Convenience / Availability

Who buys your products ?

What ValueProposition?

Consumer Research

Source: Roland Berger

Potential & Value Drivers

Segmentation

Segment of one?

Pinot Noir ?

Merlot ?

Experience / Brand Advocacy

Atlantic Hills sold 43 900 cases of Riesling at €9.30 per bottle.

Pricing research showed thatvolume would not drop if theywere to charge €9.95 perbottle

Indeed, it did not and that65€cents difference translatedinto€342 420 in extra profit

43,900

9.30

9.95

Bottom Line Impact

Pricing & Value ConsultancyCreated in 1993Present in 10 countriesResearch, Strategy, ImplementationTought leader + state of the art toolsContact: llecorre@pricingsolutions.comclients include

Pricing Solutions – Range of services

Research

• Client/Consumer Value Drivers research• Price change impact research• Transactional analysis/ Modélling• Client Value & Satisfaction studies• Product potential & ‘Willingness to pay’• Client/Consumer segmentations• …..

Advisory • Value Based Pricing

• Pricing Strategies & Tactics• Competitive Pricing / Price Wars• Implementing Price Increases• Channel Pricing• New Product Launch• ….

Process

• Development / Reinforcement of Pricing Capabilities

• Redéployment of Pricing Processes• Management & optimization of ‘client conditions ’• Multi-Channel Pricing / Pricing Corridors• Change Management• Value Propositions / Design to Price• Pricing Software implementation• …..

Support

• Sales Force Training / Motivation • Support/ Training of Pricing / Marketing teams• Decision Suppoirt Systems• Deplyment & management of ‘Test Platforms’• Product/Service Full Cost Analysis• Pricing Process deployment• Pricing & Competitive Intelligence &

Benchmarking• …..

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