A balanced approach to improving price and margin with customers and consumers
Consumer products companies need to deliver a
"win/win/win" – the right products for the
consumer/shopper, with a proposition that works for each customer,
and which also delivers the growth and profitability expectations
of the manufacturer. This requires a winning approach across all of
the key revenue drivers – with pricing and promotions
critical to the successful implementation of any changes.
What consumer products companies are saying:
- Intensive promotion and price discounting is squeezing margins across the industry.
- The sheer volume of in-store activity as everyone fights for revenue is challenging successful execution – further challenging the value and predictability of promotional investment
- Volatile input costs are undermining retail pricing and trading strategies
- Escalating trade spend is unsustainable – more is going to retailers and less to shoppers
- Retailers are being much more dynamic with their own-label ranges – both to address the challenges they now face in the premium sector, and to aggressively target shopper needs for value.
For further information, download our report ' Pricing and promotions in consumer products'.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
