Tag: pricing strategies

New product pricing strategies

4 Reasons Why Your Product Pricing Strategy Needs an Update

Setting competitive prices for your new or existing products and services can be challenging. If you set prices for your products or services too high, you’ll miss out on valuable sales. Conversely, if you set prices too low, you’ll miss out on valuable revenue. Also, providing excessive discounts can hinder a company’s profitability. In this context, it becomes vital for businesses to be proactive about identifying when and what changes you need to make to stay ahead of the competition.

So, with today’s consumers and businesses alike demanding more for less prices, how do you analyze whether your product pricing strategy needs an update? In this article, our experts have explained the 4 major reasons why businesses must revamp their new product pricing strategies to gain a competitive advantage.

A Company’s inability to efficiently price a new product can degrade the value of the brand and lead to a price war. However, revamping new product pricing strategies to meet the market demand can become a competitive advantage. Request a FREE proposal today!

Reasons Why Businesses Must Leverage New Product Pricing Strategies

#1: Company’s lack of accurate competitive pricing data

In today’s competitive marketplace, constantly monitoring and benchmarking against the competition is becoming crucial for businesses to capitalize on new market opportunities. Businesses that are still employing traditional methods for manual data collection can no longer gain a competitive advantage as manual data collection is highly time-consuming. Hence, it’s high time for organizations to revamp their new product pricing strategies and proactively respond to the competitors’ pricing strategies by efficiently tracking their new product pricing strategies and models.

Competitive pricing strategy can help businesses in this context. By leveraging competitive pricing strategies, businesses can make changes in their pricing strategies to meet the market competition and capitalize on new market opportunities.

#2: Inability to understand price elasticity

Understanding price elasticity helps businesses to analyze how customers’ respond to the price fluctuations in the market. Also, as different products and services have distinct price elasticities, businesses need to understand how customers’ react to the price changes in the market. Also, analyzing past sales data and conducting new product pricing segmentation can help businesses in setting competitive prices. Companies that fail in doing so need to revamp their pricing strategies to stay competitive in the marketplace.

New product pricing strategies work best for these brands looking to understand the price elasticity for a product or service.

With our expertise in formulating new product pricing strategies for various global giants, we can help you to estimate the accurate prices of your products or services and determine if it meets your consumers’ expectations. CONTACT US to know how our new product pricing strategies can help your business.

#3: Inability of value-based pricing strategy model

A company’s inability to adapt with value-based pricing strategy model can prove to be costly. Also, the lack of a value-based pricing strategy model subsequently impact the company’s sales rate and increases customer churn. Hence, companies that lack a value-based pricing strategy or new product pricing strategies may lose sales to competitors.

In this instance, businesses realize the real importance of revamping their new product pricing strategies. By leveraging new product pricing strategies, businesses can satisfy customers’ demands and boost customer loyalty.

#4: Employing an overly simplified new product pricing model

In today’s technology-driven business world, using traditional pricing strategies and models can longer help businesses. Gone are the days when companies leveraged cost-plus pricing by relying solely on the cost of production. It’s high time for businesses to leave behind traditional pricing models and take into consideration factors including seasonal fluctuations, competitor pricing, and product value while setting prices.

By leveraging Infiniti’s new product pricing strategies and solutions, businesses can efficiently tackle these challenges and competitively set prices for their new products and services.

Product pricing strategies for a new product

NEW PRODUCT PRICING SRATEGIESWant to know the right product pricing strategies to follow to efficiently price your new product or service? Read the article here on new product pricing strategies.

Pricing a New Product: The Right Product Pricing Strategies to Follow

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Penetration pricing strategy

Infiniti’s Penetration Pricing Strategy Helped a Consumer Electronics Company Achieve 22% Increase in Market Share

Penetration Pricing Strategy for a Consumer Electronics Company

With a large number of consumer electronics products being introduced every year, companies in the consumer electronics market are facing difficulties to increase market share and sales volume for their products. Also, as pricing largely impacts customers’ buying behaviour, it becomes vital for consumer electronics companies to competitively price their products. However, for companies that are new to the market, it is even vital to introduce some introductory offers to set up their customer base in a particular market. This is where penetration pricing comes in. Penetration pricing strategy helps businesses gain sales traction. This also helps businesses to increase market share.

Penetration pricing strategy helps businesses to lure customers away from established competitors. Request a FREE proposal to know how our product pricing strategies can help your business to achieve maximum market share within a short span of time.

Business Challenge

The client is a consumer electronics company in Europe. The client was new to the European market. As the European consumer electronics market was highly saturated, the client was facing difficulties in competitively pricing their products. The client even faced difficulties to lure customers’ attraction, build brand loyalty, and generate demand for their products.Therefore, they approached Infiniti Research to leverage their expertise in formulating a penetration pricing strategy. With Infiniti’s price penetration strategy, they also wanted to analyze the pricing strategies adopted by competitors and devise an appropriate penetration pricing strategy to gain market share and attract customers.

By leveraging Infiniti’s penetration pricing strategy, the client wanted to achieve the following:

  • As pricing plays a major role in customers’ buying behavior, the client wanted to leverage penetration pricing strategy to build customer base quickly by selling products at a lower price. By building a better customer base, the client wanted to enhance their sales rate.
  • As the client was new to the European consumer electronics market, they were facing challenges in capturing market share. With Infiniti’s penetration pricing strategy, the client was looking to provide introductory discounts to customers and capture maximum market share.
  • With Infiniti’s penetration pricing strategy, they also wanted to eliminate the market competition by offering products at a lower value compared to their competitors.
  • With Infiniti’s penetration pricing strategy, the client also wanted to create a mass market for their products and establish themselves as market leaders.
  • With Infiniti’s penetration pricing strategy, they further wanted to measure customers’ sensitivity to price changes and identify the price gap with their competitors.

CONTACT US to know how our penetration pricing strategy can help your business to formulate an efficient pricing strategy for your business.

Solutions Offered and Value Obtained

The experts at Infiniti Research followed a four-phased approach to formulate an efficient penetration pricing strategy for the client.

Conducted a thorough market pricing analysis – The experts at Infiniti Research also analyzed the European consumer electronics market players and their pricing strategies. The factors such as competitors’ product offerings, pricing strategies, market position, strengths, and weaknesses were considered during the analysis.

Analyzed the target audiences – The experts analyzed the needs and demands of the client’s target customers. The experts also analyzed customers’ buying behavior, customers sensitivity to price changes in the market. They also analyzed how consumers’ reacted to new product launches in the market.

Analyzed competitive landscape – The experts analyzed the top five competitors of the client. They further analyzed the structure of their pricing, discounts, and their market share.

Created a pricing strategy and execution plan – Based on the insights obtained, the experts at Infiniti Research formulated a pricing strategy for the client. The formulated pricing strategy plan acted as a blueprint that helped the client to efficiently price their products to gain maximum market share.

Results Obtained

With Infiniti’s penetration pricing strategy, the client was able to create a mass market for their products in Europe. They were also able to build a better customer base and achieve a high market share. By offering products at a lower price compared with their competitors, the client was able to surpass the competition. Infiniti’s penetration pricing strategy helped the client to enhance brand loyalty. Furthermore, it helped them to sucessfully establish their market presence in the European consumer electronics market.

Also, by leveraging Infiniti’s penetration pricing strategy, the client was able to:

  • Grow their market share by 22% in the course of one year
  • Capture customer traction by offering products at lower prices
  • Build customer and brand loyalty

For a new venture, figuring out how to price your products or services is highly challenging. Infiniti’s penetration pricing strategy can help you efficiently tackle this challenge. Request for more information to gain more insights into our services and learn how our penetration pricing strategy can help you achieve high market penetration rates quickly.

What is penetration pricing strategy?

Penetration pricing strategy is a business process in which the prices of products are initially kept low to reach a wide fraction of the market. This also helps businesses attract customers towards their brands and also outpace the market competition. Furthermore, penetration pricing strategy stimulates market growth and helps companies capture maximum market share for their products or services.

Advantages of penetration pricing strategy

  • Helps businesses to capture maximum market share in a short time
  • Enhances brand loyalty and also brand awareness
  • Helps companies gain a leading edge in the new or existing market compared with competitors
  • Helps achieve higher market penetration rates quickly
  • Encourages word of mouth marketing and also enhances customer experience

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competitive pricing strategy

Infiniti’s Competitive Pricing Strategy Elevates Sales and Profit Margins for a Canadian Fast Food Company

Competitive Pricing Strategy for a Fast Food Company

Today, businesses use a variety of pricing strategies depending on their unique business goals and objectives. However, in today’s competitive marketplace, it is important to have the right pricing strategy to maximize sales and profits. Also, businesses need to constantly monitor competitors’ pricing strategies and plans in order to have a competitive advantage in the market. This is where the real power of competitive pricing strategy comes in. Major food and retail companies are considering competitive pricing strategies to price their products. This success story explains how our competitive pricing strategy helped a fast food company gain a competitive advantage in the market.

Deciding the right ‘price’ for a product is a challenging task for companies. If you are facing difficulties in pricing your products or services, our experts can help. Request a FREE proposal to know how our competitive pricing strategy will help you efficiently price your product to yield maximum profits.

Business Challenge

The client is a fast food company based out of Canada. As they were new to the Canadian fast food market, they faced difficulties in efficiently pricing their products. Also, the client noted that Canadian customers were very selective regarding purchases due to their knowledge of the monetary value of products. The client, therefore, was facing difficulties in competitively pricing their products according to the current market demand and in attracting new customers. They approached Infiniti Research to leverage their expertise in offering competitive pricing strategy solution.

With Infiniti’s competitive pricing strategy solution, the client also wanted to:

  • Identify what similar fast food companies are charging for their products and set prices according to current market demand
  • Respond faster to their competitors’ actions and better position their company in the Canadian fast food market.
  • Attract customers who are price sensitive and increase the customer satisfaction level
  • Compete much better in the Canadian fast food industry and maximize profits with each price change.

Solutions Offered and Value Delivered

The experts at Infiniti Research conducted a four-phased approach. This involved conducting a thorough Canadian market analysis, analyzing the client’s target audiences, identifying direct and indirect competitors, and devising a pricing strategy and execution plan. As the client was new to the Canadian fast food market, the experts recommended the client to provide an introductory offer and discounts to attract customer segments.

With the insights obtained, the experts helped the client to decide competitive prices for their products. This helped them attract new customer segments. Also, the insights obtained from Infiniti’s competitive pricing strategy engagement helped the client implement a flexible pricing strategy to adapt to the unexpected price fluctuations in the market. Furthermore, providing introductory offers and discounts helped the fast food company to attract new customers.

The client was able to exceed their revenue expectation and gain a competitive edge in the Canadian fast food market within one year of entering the new market. Moreover, with Infiniti’s competitive pricing strategy engagement, the company was able to achieve average savings of 27.3%.

Aligning prices with market demand doubles revenue for companies. Wondering how? CONTACT US to know how our competitive pricing strategy can help you align your products’ prices with the market demand to maximize profitability.

Advantages of Competitive Pricing  

Respond quicker to competition

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competitor analysis

Transforming Production Processes and Increasing Market Share by 37% for a Food Packaging Company – Infiniti’s Latest Competitor Analysis Engagement

Competitor Analysis for Food Packaging Company

With technological progression and market advancements, the food packaging industry continues to evolve. Moreover, the trends in packaging such as the introduction of sustainable packaging practices, convenient on-the-go packaging, clean labels, and healthy choices have gradually increased the number of new entrants into the European food packaging market. This has made it vital for existing players in the European food packaging market to keep track of their competitors’ plan and actions and refine their existing business models to achieve maximum profitability. Therefore, companies are partnering with firms like Infiniti Research to leverage their expertise in offering competitor analysis solution.

Do you know what your shortcoming are when compared to your competitors? If not, our experts can help you identify your strengths and weaknesses compared with your competitors. Request a FREE proposal today!

Business Challenge

The client is a food packaging company based out of Europe. The entry of new players drastically increased the competition in the European food packaging market. The client, therefore, was facing difficulties in competing with other major players, in terms of cost, quality, and capabilities in providing innovative packaging offerings for customers. Moreover, they were losing customers and market share to their competitors due to their inability to competitively price their products. This compelled them to reduce the price for their products, which subsequently resulted in a loss in profit margin by 7%.

Therefore, they approached the experts at Infiniti Research to leverage their expertise in offering competitor analysis solution. By leveraging Infiniti’s competitor analysis solution, the client wanted to explore ways to stay competitive in the market by distinguishing market disruptions, analyzing competitors, and developing strategic business plans.

By leveraging Infiniti’s competitor analysis solution, the client also wanted to tackle several other market challenges:

  • With the increasing demand for environmental-friendly packaging materials in Europe, the client was facing difficulties in adapting to the evolving market demands. With this, they were losing market share to their competitors who had already adopted environmental-friendly packaging strategies. Therefore, with Infiniti’s competitor analysis solution, the client wanted to analyze their competitors’ offerings in direct comparison to theirs and focus on enhancing their business processes.
  • The client noted that their competitors have already leveraged automation solutions in their business operations. With Infiniti’s competitor analysis solution, the client wanted to identify the technologies leveraged by their competitors. By doing so, they also wanted to adapt to the evolving technologies to maximize uptime and enhance their operations.
  • The client’s unstructured approach to marketing and sales resulted in huge capital losses for the company. By closely analyzing the strategies adopted by their competitors, the client wanted to refine their existing marketing models and devise marketing campaigns that drive maximum sales.
  • The client’s key competitors were offering discounts and other introductory offers to customers. With this, the client was compelled to reduce prices for their packaging materials. Therefore, by leveraging Infiniti’s competitor analysis solution, they wanted to analyze the pricing strategies followed by their competitors and competitively price their products.

Our tailored and intelligent solutions empower our clients to make an informed business decision and maximize profitability. CONTACT US to learn more about our services their benefits for your business.

Solutions Offered and Value Delivered

Our experts followed a detailed four-phased competitor analysis approach to help the client tackle the industry challenges. The initial phase of the competitor analysis engagement involved identifying businesses offering similar products and services in the European packaging industry. The next phase of our competitor analysis engagement focused on identifying the client’s key competitors’ customer base. In the third phase of the competitor analysis engagement, the experts focused on evaluating the strengths and weaknesses of the client in comparison to their competitors. The last phase of our competitor analysis engagement involved conducting a competitive benchmarking analysis, competitor mapping, and also identifying the marketing approaches employed by the client’s competitors.

The insights obtained from Infiniti’s competitor analysis solution helped the client to gain detailed insights about their end-customers, current market position, and their key competitors. Understanding the needs and demand of their target customers helped the client to innovate their product offerings according to their customers’ requirements. By gaining detailed insights into their competitors’ key strategies and marketing approaches, the client was able to devise well-informed business plans to tailor their product offerings. Also, the experts at Infiniti Research recommended the client to apply automation solutions in their production process. This helped the client to enhance their production efficiency and better manage workflow.

Infiniti’s competitor analysis solution also helped the client to understand their competitors’ pricing strategies and make constant changes in their pricing plans. With Infiniti’s competitor analysis solutuon, the client was also able to balance quality and growth. Furthermore, Infiniti’s competitor analysis solution helped the packaging company to better allocate resources and enhance their market share by 37% within the course of one year.

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Our competitor analysis solution can help your company gain a leading edge in the market. Want to know how? Request for more info!

Importance of Competitor Analysis for Packaging Industry

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Our competitor analysis solution helped a banking company assess key competitors and devise an efficient strategy to establish themselves in the European market. Want to know the approaches underteken by the experts at Infiniti Research to help the client? Read the complete success story below.

Competitor Analysis for a Leading Banking Sector Client Helps Assess Key Competitors and Devise an Effective Strategy to Establish Themselves in the European Market

New product pricing strategies

Competitive Pricing Analysis Helped a CPG Company Surpass the Competition by Regulating and Benchmarking their Pricing Strategy

Despite a growing economy, consumer packaged goods (CPG) brands in Canada are reeling under the pressure from shifts in customer behaviour and buying patterns. Also, with the advent of e-commerce, it has become easier for customers to easily compare prices from various vendors. With this, developing accurate pricing strategies have become imperative for companies in the CPG industry. Furthermore, continuously monitoring the price changes employed by competitors and constantly making changes in pricing strategies are becoming vital for CPG companies to drive profitability. This is where companies realize the importance of leveraging competitive pricing analysis.

Wondering how employing competitive pricing analysis will help you better price your products and boost your company’s bottom line result. Request a FREE brochure to gain more insights into our services portfolio and to know how our solutions will help you monitor competitors’ pricing strategies and outpace the global competition.

Business Challenge

The client is a CPG company based out of Canada. As the client was new to the market, they were facing difficulties in competitively pricing their products. Also, the client lacked data on their competitors’ pricing and promotional strategies. This made it difficult for them to build strategic pricing plans to support their product’s pricing and promotional strategies. They even ignored changes in cost, competitive environment, and in customer’s preferences. With this, the company struggled with meeting their sales target for the initial year. Also, they were losing their customers and market share to their competitors. The client, therefore approached Infiniti Research to leverage their expertise in offering competitive pricing analysis solution.

Other challenges the client was looking to address by leveraging Infiniti’s competitive pricing analysis were:

  • The client set prices for their products based on their manufacturing and distribution costs. They did not analyze their customers’ perceptions of value. This gradually resulted in prolonged sales cycles and affected the company’s profits. With Infiniti’s competitive pricing analysis, they wanted to analyze how their competitors set prices for their products according to the perceived value of the product.
  • The client was facing difficulties in analyzing unexpected price fluctuations in the market. With Infiniti’s competitive pricing analysis, they wanted to monitor the prices employed by their competitors.
  • With Infiniti’s competitive pricing analysis, they wanted to measure customers’ sensitivity to price changes and identify the price gap with their competitors.
  • The client realized that pricing is one of the main factors behind customers’ purchasing decision. By leveraging Infiniti’s competitive pricing analysis, they were able to accurately price their products and meet the fluctuating market demand.

Our Approach

  • The initial phase of competitive pricing analysis engagement involved gathering detailed insights into client’s key competitors in the Canadian CPG market. This also involved analyzing the niches they deal with, pricing strategy that they follow, their profit percentage, and their growth rate.
  • The second phase involved identifying the explicit cost (the cost incurred by the company for making all the physical payments and the contractual obligations) and implicit cost (costs on which the firm waives any opportunity of earning a profit from the use of its internal resources by third parties). This helped the client to understand the total cost of ownership of the product.
  • The third phase of this competitive pricing analysis engagement involved identifying customers’ sensitivity to price changes and developing effective strategies to meet their demands.
  • The final phase involved 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.

Results Obtained

With Infiniti’s competitive pricing analysis solution, the client was able to competitively price their products relative to the competition. Also, Infiniti’s competitive pricing analysis helped the client to adapt to dynamic pricing, which allowed them to compete much better in the industry and maximize profit with each pricing change. This helped them surpass the competition and achieve their annual sales target. The competitive pricing analysis also helped the client to develop flexible pricing strategies and respond to unexpected price fluctuations in the market. As a result, they were able to enhance their profit margin by 23%. Furthermore, the solutions helped the client to enhance customer experience and keep their customer base stable.

The competitive pricing analysis solution also provided benefits that helped the client:

  • Fine tune their pricing strategies and profitably price their products.
  • Develop robust competitive pricing strategies
  • Compare the prices of the competitors and identify opportunities to differentiate their products and services

CaptureWhat is competitive pricing analysis?

Competitive pricing analysis refers to pricing the products or services relative to competitors’ prices for similar products/services. 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 competitively set prices for their products/services according to the market demand. Furthermore, it helps companies to dynamically adapt to competitors pricing strategy and gain a leading edge in the market.

What are the four types of pricing strategies?

Let’s have a look at some of the major pricing strategies implemented by organizations:

  • 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

Interested to know more about our competitive pricing strategy and their benefits for your business? Contact us today!

Competitive landscape analysis

Realizing Savings of 23% for a Financial Services Provider – Infiniti’s Competitive Landscape Analysis

The financial services industry in the US is poised to experience unprecedented changes as it moves towards digitalization. The digitalization of financial services along with adoption of cloud computing, smart devices, and data accessibility have steered the financial service industry to the brink of disruption. And, as the challenges in the financial services industry continue to escalate, it becomes imperative for companies in the financial services industry to evaluate and improve their services to keep up with the fast pace of changes in the industry. Moreover, with the entry of new players in the industry, the domestic markets have become saturated. As a result, financial service providers are, therefore, turning their attention to international markets to increase their market shares, revenues, and profits. To avoid being left behind, it becomes imperative for companies to leverage competitive landscape analysis solutions.

Failure to track potential risks can be a major threat to growing businesses. Request for a FREE brochure to learn more about our services portfolio and importance of our competitive landscape analysis engagement for tracking threats and opportunities in the market.

Business Challenge

The client is a renowned financial service provider based out of the United States. The company was established in 1989. With many financial service providers vying for a pole position in the US market, the client approached Infiniti Research to uncover new market opportunities and analyze the competitive landscape in international markets. The client wanted to evaluate the competitive landscape in Brazil, China, Russia, and South Africa, featuring leading player profiles and their main service offerings. Furthermore, our client sought to understand the market size and determine growth opportunity in each country.

Other challenges faced by the client were:

  • With a number of competing financial service providers offering the same services, the client was facing difficulties in understanding the competitive landscape. With the aid of Infiniti’s competitive landscape analysis, the client wanted to gain deep insights into their competitors’ service offerings to evaluate their position in the target market.
  • As the client was looking to expand their operations across Brazil, China, Russia, and South Africa regions, they wanted to understand the requirements and the demands of the people in those regions to serve them better. With Infiniti’s competitive landscape analysis solution, they also wanted to understand the service offerings and pricing strategies of key competitors in the target countries.
  • In today’s customer-oriented business world, the client realized the need to differentiate their business from other major players in the market. With the aid of competitive landscape analysis, the client wanted to keep tabs on the competition and enhance business outcomes.
  • By leveraging Infiniti’s expertise in offering competitive landscape analysis, the client wanted to gather enough data about the international markets and required recommendations from the experts to mitigate barriers to entry in foreign markets.

Solutions Offered and Value Delivered

To help the client tackle the above-mentioned challenges, the experts at Infiniti Research leverage competitive landscape analysis engagement. The competitive landscape analysis engagement followed a 3-phased approach.

  • The initial phase of the competitive landscape analysis approach involved gathering data on competitors’ key service offerings and pricing strategies. Our experts also conducted an analysis of the leading international market players to get an initial sense of most-effective service offerings as well as market drivers and trends.
  • After analyzing the leading players and their service offerings, the next step involved identifying the right business partners for the client and the best route to enter the target markets.
  • The final phase of the competitive landscape analysis engagement involved the creation of a competitive matrix and recording the data gathered. This helped the client to rank themselves compared with their competitors. Also, they were able to analyze the key business areas where they needed to focus more.

Infiniti’s competitive landscape analysis solution helped the client to validate their internal perspective for international growth and helped them realize the real potential of select markets. The competitive landscape analysis further helped the client to prioritize the next steps in their international expansion, assign resources, and fine-tune their business strategy.

CaptureAlso, with Infiniti’s competitive landscape analysis engagement, the client was able to better benchmark their market position relative to their competitors and develop strategies to maximize opportunities and mitigate threats. This further helped the client to monitor competitors’ USPs and adjust their strategy to attract new customers. In addition to improving customer experience, with Infiniti’s competitive landscape analysis solution, the client was able to outperform our expectations with a 23% increase in revenue within 8 weeks.

Want to find out what your competitors are up to in the international markets? Infiniti’s competitive landscape analysis will help you gain a leading edge in the market. Request a FREE proposal to know how.

What is competitive landscape analysis?

Whether you’re running a start-up or a global company, it’s imperative to beat your competition to better position your business. To do so, you’ll need a strategic business plan and insights about your competitors and industry. This is where a competitive landscape analysis comes into play. Competitive landscape analysis can help your company gain insights into the current industry landscape and forecast plans of your key competitors.

HOW COMPETITIVE LANDSCAPE ANALYSIS CAN HELP_ (2)

CONTACT US to leverage our competitive landscape analysis solution.

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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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IT services industry

Popular pricing strategies that e commerce companies swear by

Choosing the right pricing strategy is one of the most crucial decisions that you have to make. Get it wrong, and it could cost big for your business. Online and offline retailers alike recognize pricing strategy as one of the key value levers, and, accordingly, companies have worked to refine their pricing strategy, tactics, and tools over the past several decades in hopes of optimizing their approach. Today, with the rising use of the internet and smartphones, customers can compare prices with just a click of a button. So, the pricing strategy that companies in the e commerce industry choose must be one that not only gives them a good ROI but also gives a sense of ‘value for money’ to the customers. There are endless ways for companies in the ecommerce industry to configure Get More Infoand set their pricing strategy. Here is our pick of the top five ways to get online pricing strategy right:

Loss leader pricing

This is a crucial pricing strategy for companies in the ecommerce industry to convert their customers into loyal customers and ensure repeat sales. This strategy is generally practiced by retail giants such as Amazon and Walmart. The main idea behind this pricing strategy is to price certain products at a price that is significantly lower than that of the competitors in the e commerce industry. This is similar to the predatory pricing strategy that is mostly followed by offline retailers. This technique not only drives traffic into the store but also help in converting window shoppers into paying customers.

Basket-based pricing

Basket-based pricing is a common pricing strategy that is used by players in the e commerce industry to entice customers to make a purchase. In this technique, certain price points or products are used to incentivize customers to purchase products. For instance, it is often seen that online retailers offer free delivery if your total basket value exceeds a particular limit. This sometimes makes customers purchase more than they would have initially intended so that they can avail of the benefits.

Quick-delivery pricing

Amazon is a prominent example of an e commerce industry player who has been leveraging this pricing strategy effectively. The company leverages its state of the art logistics network to not only serve its customers at the shortest possible time but also to use it as a profit-making pricing strategy. They give customers options such as same day delivery, next day or 2-day shipping, in return for an additional premium from the customers. This is a great way for the company to keep its prices lower than the competitors but at the same time drive profitability for the business.cta ir

Real-time price optimization

With the advent of advanced technology, it is now possible for companies in the e commerce space to gain real-time insights on determining whether the rate at which the products are priced is the ideal way of ensuring profitability or not. It is not advisable to always price the products lower than that of the competitors. Instead, players in the e commerce industry can use retail analytics to identify and adjust the prices based on factors such as demand and out-of-stock situations.  Out-of-stock situations are opportune moments for setting prices at a higher rate as customers looking for these products on competing sites will surely navigate to you.


Know how our market intelligence solutions help companies in the e commerce industry stay relevant in the market

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Connected Car Technology

Cross Selling and Upselling Strategies That Will Take Your Business a Long Way

Quick wins and fast growth don’t come easy for businesses, but if they have the right strategies in place, the business is in for a big win. Cross selling and upselling are two such strategies that help companies increase their sales margins and improve performance without having to invest any extra sum of money. So, what exactly is cross selling and upselling? Upselling is the practice of encouraging customers to purchase a product that is on a higher-end comparatively than the one the customer intends to purchase. Cross-selling, on the other hand, invites customers to buy related or complementary products that give a better utility when paired with the product that is already in the customer’s basket. Following are some of the key cross Request Proposalselling and upselling strategies that will step-up your business outcomes:

Begin with the top customers 

Rolling out the same services to all the customers at the same time might not be a feasible plan.  Each client or potential client might have to be approached with a different strategy. It is advisable for companies to try out their cross selling and upselling efforts with a few of their regular and most loyal customers. These customers are also more likely to provide genuine feedback on the services and their willingness to pay.

Discounts and incentives 

Discounts and other incentives are a great way to induce more purchase from the buyers. In many cases, cross selling and upselling efforts bear fruit only if customers feel that they are gaining something out of it. But this strategy must be undertaken only after considering the ROI. If it does not give a good return on investment, then it would eventually prove to be a loss for the business.

Cross selling and upselling are strategies that help companies increase their sales margins and improve performance without having to invest any extra sum of money. Click To Tweet

The sales team incentive plan 

It is important to incentivize the sales team for the cross selling and upselling efforts that they put in. It is a stated fact that the majority of the salespeople are driven by competition and compensation. Companies can use this as a motivator for employees to increase the sales. Setting up a leaderboard will also be useful to show how team members stack up against each other and measure the team’s progress towards the targets and goals that have been set.

Practice active listening 

Cross selling and upselling can be done even on the fly during a phone call or over an email exchange, so it is vital for companies to identify signals from the customer that show they might be ready to hear the offer made by the business. If the customer is hinting at expanding capabilities or desire to reach their goals faster, businesses must take advantage of this opportunity to mention how their products or services can help get them there.


To know more about how to get your cross selling and upselling strategies right: 

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Market Intelligence

Dynamic Pricing: What Are the Biggest Challenges?

Dynamic pricing has been one of the most lucrative pricing strategies that companies use to mint money. While it is not an entirely new concept, companies have been using it randomly over the years. In laymen terms, dynamic pricing is a strategy in which product prices continuously change, sometimes in a matter of minutes, in response to real-time supply and demand. Examples include Uber for taxi rides that sets its rates based on supply and demand, consumer electronics shop MediaMarkt that has installed electronic price tags to change prices depending on competitor behavior, and the gas station chain Tanq4you that bases its rates on the actual oil price and the weather condition. But in several cases, implementing dynamic pricing may not turn out to be as easy as it sounds. Here are some of the challenges that companies face while implementing dynamic pricing strategies:Request Free Proposal

Data accuracy

Dynamic pricing relies heavily on data, and when pricing is being changed on the basis of hours or even minutes, ensuring that the data driving pricing decisions is accurate is highly critical. While there’s a growing ecosystem of data providers and the techniques by which data is collected and filtered are sure to improve, businesses should refrain from assuming that bad data won’t make it into their systems.

Customer perception

Many consumers are not aware of the fact that retailers resort to dynamic pricing to alter prices on a regular basis, but as it becomes more noticeable thanks to the web, companies must consider the perception issues it raises. A customer who observes that a product can become cheaper or more expensive within minutes might get discouraged at the prospect that they could end up paying more for a product based on little more than what they would pay if they waited longer. Also, there is the possibility that some users will notice dynamic pricing, but won’t quite understand what’s going on, resulting in a reduction of trust.

Algorithm errors

Several instances from the past emphasize on the fact that algorithms are far from perfect and can produce costly errors. As retailers embrace dynamic pricing models which are of course based on algorithms, thought should be given to how mishaps can be minimized and what policies will govern when a mishap results in a significant mistake (e.g., customers being able to purchase a product at a ridiculously low price).

Change in customer behavior

As the existence of dynamic pricing becomes more evident to consumers, companies will need to come to terms with the possibility that it could impact customer behavior. Dynamic pricing undoubtedly has the potential to encourage sales, but is it possible that in some instances it could it impede sales? If customers get a feeling that the price of a product might dip in the very near future, or perhaps even on the same day, this could result in some of them deciding to hold off on a purchase. And as every retailer knows, a delayed purchase is much more likely to become a purchase that never happens or happens somewhere else.


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