Competitive Pricing Analysis for the Retail Industry
Today, retailers use a variety of pricing strategies depending on their unique business goals and objectives. However, for retailers to succeed in the long-run, it is important to have the right pricing strategy. Also, retailers need to constantly monitor competitors’ pricing structures and set product prices based on the current market demand. This is where the real power of a competitive pricing analysis comes in. This success story explains how our competitive pricing analysis solution helped a retailer gain a competitive advantage in the market.
The client is a retailer based out of Canada. With the rising market competition and unexpected market fluctuations, the client faced difficulties in efficiently pricing their products. Also, as the product price largely influenced customers’ buying behavior in the Canadian retail market, the client was finding it challenging to dynamically adjust prices for their products according to the current market demand and competitors’ pricing structures. As such, they approached the experts at Infiniti Research to leverage their expertise in offering competitive pricing analysis.
By leveraging Infiniti’s expertise in offering competition based pricing analysis, they also wanted to:
- Analyze pricing strategies of the top retail companies in Canada and set prices for their products accordingly.
- Respond faster to their competitors’ actions and better position their company in the Canadian retail market.
- Attract price-sensitive and retain valuable customer segments.
- Measure customers’ sensitivity to price changes and identify the price gap with the competitors.
- Analyze how their competitors set prices for their products according to the perceived value of the product.
The initial phase of the competitive pricing analysis engagement involved conducting a competitive intelligence study. This phase of the engagement helped the client to analyze the competitive landscape as a whole through a holistic understanding of their competitors’ product/service offerings and technology/innovation strategies.
The next phase of the competitive pricing analysis engagement involved a competitive benchmarking analysis, where the experts compared the client’s pricing strategies with that of their competitors. This phase of the competitive pricing analysis helped the client to understand prices for similar products in the Canadian retail market and change their product prices accordingly. Our solutions even helped the client to measure customers’ sensitivity to price changes and identify the price gap with their competitors.
Finally, our experts conducted a demand forecasting study, where they analyzed the potential demand for the client’s products in the market. By understanding the market demand for their products, the client was able to revamp their pricing structures based on the market demand.
The insights obtained from Infiniti’s competitive pricing analysis solution helped the client to competitively set prices for their products. This helped the company to control the competition by preventing loss of market share and customers to their competitors. Also, Infiniti’s competitive pricing analysis solution helped the client to keep their customer base stable and drive business growth. Furthermore, by employing dynamic pricing strategy, the client was able to compete better in the Canadian retail market and maximize profits with each customer.
Infiniti’s competitive pricing analysis helped the retail company to drive sales and this subsequently helped them to enhance profit margins by 19% in one year.