Tag: competition based pricing

Competitive pricing analysis

Competitive Pricing Analysis Helped a Retail Company to Boost Sales and Enhance Profit Margins by 19%

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.

Request a FREE proposal to know how our competitive pricing analysis can help you efficiently price your products to yield maximum profits.

Business Challenge

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.

Deciding the right ‘price’ for a product is a challenging task for companies. Are you finding it challenging too? If yes, our competitive pricing analysis can help. Contact us today to leverage our competitive pricing analysis solution!

Solutions Offered

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.

Results Obtained

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.

Competitive Pricing Analysis

Aligning prices with market demand and competition doubles revenue for companies. Our competitive pricing strategy can help businesses achieve this objective. Request for more info!

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Top Pricing Strategies in Marketing You Cannot Miss Out On

Deciding how much to charge for a product or service requires more thought than merely calculating the costs and adding a mark-up.

Pricing strategies and methods often prove to be extremely complex and intense as it includes a number of calculations, research work, risk-taking ability, and understanding of the market and the consumers. The top management of the company considers a number of factors before pricing a product. This includes the ability of a consumer to pay for the products, the segment of the product, the action of the competitor, the conditions of the market, the production and the raw material cost or the cost of manufacturing, and the margin or the profit margins. An effective pricing strategy helps to identify competitive prices for a product or service. Adopting a competitive pricing strategy also depends on whether the company wants to achieve operational efficiency or product leadership. If the company’s value proposition is operational efficiency, then they need to follow a highly competition based pricing tactic. On the other hand, if the company’s value proposition is product leadership or customer intimacy, the offerings need to be priced on the higher end when compared to similar products in the market. This gives the customers a feeling of uniqueness and loyalty to the brand. This blog from Infiniti Research curates some of the top pricing strategies in marketing that our industry experts feel are most relevant in today’s business scenario.

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