Setting the right price is one of the best ways to positively impact a company’s bottom line. Yet, price-setting is not always top-of-mind nor owned by a single department within a company. This holds true across industries, whether it is consumer goods, healthcare, telecom, finance or technology. Sometimes Marketing takes responsibility for pricing, while other times Finance takes on the task. Often, we find that there exists no pricing strategy at all in companies, and thus, no clear ownership of pricing responsibility.
On October 27th, the European Parliament voted in favor of a proposal on net neutrality. As part of this proposal, it was also decided that roaming costs within EU territory will be abolished, starting June 1, 2017. This does not concern all roaming, but “roaming within the range of normal usage”. It isn’t yet quite clear how normal usage is defined, and we have to wait until the end of this year to find out.
Offering price discounts on consumer goods seems to be a quick answer to tough competition and to consumers who are more demanding and price sensitive these days. Many times our clients ask us which promotion strategy is most effective in driving share. However, the answer for short term sales boost is different from the one that maintains your brand’s financial health. Let us explain in this article what type of promotion offers the best long term effect.
In many service markets – like telecom, energy and finance – consumers do not switch providers very often and service providers are having trouble activating these potential customers. Even though some consumers might want to switch due to an interesting offer from a new provider, often they still don’t act.
During harsh economic environments, companies have to make deliberate choices on how to invest marketing budgets to optimize profits. Especially in the competitive FMCG industry promotions are often used as a tool to increase sales. However, what is the most effective type of promotion? And what are the implications of these promotions on your overall product portfolio revenues?
Have you come across the situation where many items (descriptions, statements or concepts) had to be put in preference order? Ranking and rating type questions are often used in these situations, although the last few years MaxDiff has been gaining more attention as a good alternative.
In light of increasing patent expiration rates, a switch from Rx to OTC proves to be a successful counter-strategy against generic erosion. As a result, marketers face challenges entering a new competitive environment. Our Consumer Health team has valuable experience in bridging the knowledge gap between healthcare and consumer markets to facilitate your decision making process.