Infiniti’s latest premium pricing study provides insights on measuring the price and value addition of products and services that helped a global manufacturing company to enhance its approach to product pricing.
What is premium pricing?
A competitive market landscape drives businesses to focus on their product pricing strategies. These strategies have a long term effect on the brands’ positioning and consumer perception of its products and services. Price fluctuations have two adverse effects on the brand, it negatively impacts the return on investment (ROI) and hampers the brand’s ability to select the ideal target market. Organizations can benefit from a premium pricing strategy to create product differentiation and unique value proposition. It also helps the business gain a competitive edge and stay ahead of the other players in the market. Premium pricing is commonly referred to as “prestige pricing, ” and it often gives the product or service an aspirational image, improves brand perceptions, and drives return on investment (ROI). Infiniti’s recent study on premium pricing provides actionable insights to clients to help them assess their current pricing strategies and make informed decisions for the future.
Organizations often adopt a premium pricing strategy without assessing its market position, competitive environment, and the customers’ ability and willingness to pay the price. It is a major drawback for the businesses who command a premium price without a thorough market and customer insight, often results in an inappropriate pricing strategy and ultimately leads to brand and product failure.
Leveraging pricing analytics
Pricing analytics tool helps in evaluating past performance and help devise future strategies based on product categories and geographical segmentation. The business intelligence and analytics tools help organizations to set, track and measure attainable goals and objectives, and compare the actual and expected outcome. Pricing strategies can be devised based on the forecasts and insights provided by predictive analytics or a price optimization system.
Expanding to niche markets
Several pricing strategies allow organizations to enter new market segments by offering products and services at a higher price compared to the other players in the market. A common consumer perception about product pricing is that higher the price, better the quality of the offering. Gradually, it helps businesses create brand awareness, drive revenue opportunities, create product differentiation, and build brand credibility in a highly competitive market.
Solutions and recommendations
The team at Infiniti Research offered various solutions and insights on pricing and value-added assessment of its catalog and helped a leading manufacturing company to formulate better pricing decisions. Some of the solutions offered include:
- Identify the demands, preferences, and pain points of the current and potential customers
- Evaluate the key factors that drive demand based on quality, price, service, and brand equity
- Understand the competitive landscape and define benchmarks regarding quality, market players, and customer support
- Determining the factors that help promote the value added solutions
- Analyzing and identifying product portfolio and direct efforts towards various product categories like refueling, dry break, DLA standard products, and TTE
Read our comprehensive case study on how our premium pricing study helps a global manufacturing company.