We offer a suite of market-driven approaches for incorporating pricing analysis into the strategy development process. Developing a successful pricing strategy requires understanding more than just the market's price sensitivity: price needs to be analyzed in the context of the value for the money provided by the product or service relative to competitors' offerings.
We provide solutions that address a range of pricing issues from segmenting and targeting based on price sensitivity, to establishing price parameters for a new product concept, to developing sophisticated market simulation models that estimate demand and revenues across different price points. Just as your customers typically make purchase decisions by considering more than just price, our approaches emphasize the importance of analyzing price within the context of other marketing variables:
- The product or service's stage within the life cycle
- Whether the market is growing, stable, or declining
- The structure of the industry and the degree of differentiation between offerings
- The extent to which competitive offerings and potential substitutes are readily available
- An understanding of how competitors are likely to respond to a price change
- The potential capacity of the company and its competitors to increase volumes