In today’s quickly evolving environment, with a seemingly endless amount of choices for consumers, brands face constant pressure on prices to stay competitive. Especially with new product launches, it’s critical to balance consumer demand and margins, and offer your new product at the right price every time.
Introducing SKIM Price Explorer™ for quick and confident pricing decisions
SKIM Price Explorer enables quick and confident pricing decisions. This affordable solution combines our rich analytical know-how, with the realistic pricing considerations consumers face today, such as your existing portfolio and the competitive environment. With Price Explorer you can quickly identify the optimal price point for a new product, category or concept. This solution reveals the sweet spot at which to:
- Drive purchase
- Minimize cannibalization with your existing portfolio
- Maximize revenue potential
By delivering these three critical insights to brand managers, SKIM Price Explorer helps to ensure successful product launches.
SKIM Price Explorer helps you answer questions like:
- Can I quickly determine if a new product innovation will return margin?
- What’s the optimal price point for a new product I’m launching soon?
- I need to make rapid pricing decisions – at what price will this new product cannibalize my existing portfolio?
- I need to quickly understand how consumers will react to the new product price in relation to the competition
What can I expect from SKIM Price Explorer?
- Reliable pricing recommendations delivered in 5-10 days for new product launches, new concepts or new categories
- An optimal price point to maximize revenue potential
- Cannibalization between new product and your existing portfolio
- Interaction between new product introduction and competitive products
- Uptake and revenue estimates, taking into account the competitive context
- SKIM pricing expertise at an affordable price
How does SKIM Price Explorer work?
SKIM Price Explorer is a mobile-friendly three-step process to assess the optimal pricing for a new product:
- Identify current product choice at current market prices to ensure respondents consider the new introduction in context of their currently available options.
- Evaluate uptake and willingness to pay for the new product at different price points, using Van Westendorp or Gabor Granger pricing techniques depending on the situation.
- Estimate the sourcing and cannibalization between the new product and existing products for those consumers likely to buy.