Competitive Pricing: Competitor Pricing Strategies and Customer Spending Behavior Assessment for a Retail Company
Competitive Pricing Strategy for a Retail Company About the Client The client is a leading retail company, with a workforce of around 7500. The firm caters its customer’s requirements in 6 countries worldwide. The Business Challenge With new technologies, intensifying competition, and increasingly sophisticated customers, competition in the retail market is on a constant rise. Moreover, [...]READ MORE >>
Competitive Pricing Strategy for a Retail Company
About the Client
The client is a leading retail company, with a workforce of around 7500. The firm caters its customer’s requirements in 6 countries worldwide.
The Business Challenge
With new technologies, intensifying competition, and increasingly sophisticated customers, competition in the retail market is on a constant rise. Moreover, as e-commerce has taken pricing to the next level, retailers need to take a few actions to make sure that they don’t get left behind. Hence, companies in the retail industry need to keep an eye on their competitors’ behavior while setting prices in order to get the much-needed competitive edge in the market. A competitive pricing strategy helps businesses attract more customers via optimizing prices. A successful pricing strategy can significantly increase sales, optimize cooperation with suppliers, and boost revenue.
Top Challenges Faced by the Company
Problem Statement 1
With inaccurate pricing strategies for their products, the client was losing their customers and market share to the competitors. With Infiniti’s competitive pricing strategy, the client wanted to respond to every move of their competitors and better positioning of their business.
Problem Statement 2
By analyzing the sales rate of the company, the client realized that pricing is one of the most important factors behind customers’ purchasing decision. Hence, by implementing a competitive pricing strategy, they were looking out to regulate and benchmark their pricing strategy to keep their customer base stable.
Problem Statement 3
The client was facing challenges in withstanding unexpected price variations in the industry. By employing a competitive pricing strategy, the company wanted to monitor the price changes employed by their competitors.
Problem Statement 4
With Infiniti’s competitive pricing strategy, they wanted to measure customers’ sensitivity to price changes and identify the price gap with their competitors.
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Solutions Offered and Value Delivered
To address the business issues and meet the specific requirement of the client, the competitive pricing experts at Infiniti Research carried out a competitive pricing engagement. The unique competitive pricing strategy devised by our experts helped the retail client to differentiate their brand by setting accurate prices for their products, which subsequently improved the profit rate.
The initial phase of this engagement focused on improving pricing strategy for the client. The competitive pricing process offered detailed insights into competitors pricing strategies, which empowered the client to proactively manage price fluctuations and market demand. Furthermore, continuous monitoring of price fluctuations helped them to respond to price changes and prevented loss of market share.
The second phase of this competitive pricing engagement revolved around a detailed assessment of customer behavior to develop the best possible strategy for communicating with customers. This helped the client vary prices for their products considering customers’ spending behavior.
The third phase revolved around analyzing competitors strengths and weaknesses to help the client differentiate themselves by offering products and services that fill gaps that their competitors have not addressed.
By monitoring the client’s business performance over an extended period, our competitive pricing experts were successful in establishing useful data on price trends employed by the client. This data was then used to refine their business decisions and strategies.
The unique competitive pricing strategy devised by Infiniti Research helped the client to differentiate their brand by setting unique prices for their products. This helped them surpass the global competition by capturing a top spot in the market space. The intelligent pricing solutions offered by Infiniti Research also helped the client to enhance both customer satisfaction and customer retention levels.
The competitive pricing analysis solution also provided benefits that helped the client:
- Discover the strength and shortcomings of the market
- Develop robust competitive pricing strategies
- Compare the prices of the competitors and identify opportunities to differentiate their products and services
- Monitor competitors’ pricing strategies and proactively take informed business decisions
Deciding how much to charge for your product requires more thought than simply calculating your costs and adding a mark-up. Do you agree? If yes, Infiniti is here to help! Request for a FREE proposal!
Gain a strategic position in the market by leveraging Infiniti’s competitive pricing strategies.
What is competitive pricing?
Competitive pricing analysis empowers businesses to regulate the competition by preventing loss of consumers and market share to the competitors. By employing a competitive pricing strategy, businesses can continuously monitor the price fluctuations employed by the competitors. Such a move enables businesses to respond to price changes by competitors and dominate the competition by preventing the loss of market share. Furthermore, it helps them to respond to each and every competitors’ moves. As a result, with competitive pricing analysis, companies can improve their strategies to match the competitors and prevent losing customers because of the price wars.
What are the four types of pricing strategies?
Good pricing strategy helps you determine the price point at which you can maximize profits on sales of your products or services. When setting prices, a business owner needs to consider a wide range of factors including production and distribution costs, competitor offerings, positioning strategies and the business’ target customer base. Generally, pricing strategies include the following four strategies.
Competitive pricing – setting a price based on what the competition charges
Value-based pricing – setting a price based on how much the customer believes what you’re selling is worth
Price skimming – setting a high price and lowering it as the market evolves
Penetration pricing – setting a low price to enter a competitive market and raising it later
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