As we face these unprecedented challenges of COVID-19 across the world, Cornerstone Capabilities is fully committed to the safety and well-being of our employees, clients and partners.
Trade Optimization done right can increase your Promotional ROI significantly. The CPG industry has become more complex. Making fact-based pricing and promotion decisions in a timely manner is a growing challenge. Learn how to transform your organization’s Revenue Management function.
How to Develop the Optimal Pricing Strategy…
In setting pricing & promotional plans, using different pricing strategies and tactics for different products can be THE key driver of business performance. This is much like selecting the right club to make the perfect shot on the golf course!
“When you are holding a hammer, everything looks like a nail”
“Give a boy a hammer and he will find that everything he encounters needs a pounding." If you have ever encountered a small boy with a runaway hammer, you can probably relate. This was Abraham Maslow’s first wording which he later modified to, “If all you have is a hammer, everything looks like a nail," and this concept (a.k.a. Maslow’s Hammer) became commonly used to refer to over-reliance on a familiar tool to solve any and every problem.
Experience has shown that in CPG Analytics too, people tend to take the tools or approaches that have served them well in the past and try to force them to be the right solution for new problems.
The new Grocery Tariffs are a Golden Opportunity to Rethink Pricing Strategy!
Proposed to commence July 1st, 2018 Canada appears to be on track towards implementing a +10% tariff on many consumer products sourced from the United States. The tariffs are Prime Minister Justin Trudeau’s direct response to the aluminum and steel tariffs announced by President Donald Trump. While the initial reaction from both Canadian manufacturers & retailers could easily sound like “Oh no, another COGs pressure”, this adversity could be an opportunity in disguise for Canadian CPG manufacturers.
What’s all the Buzz?
The concept & practice of Revenue Management isn’t a new idea. What is new is the shift of CPG companies building their revenue management capabilities in house.
Setting and executing a product pricing strategy can be an intimidating exercise. However, it does not have to be. There are 5 simple lessons that allow ALL companies to build pricing capabilities and know-how.
Price elasticity is an incredibly powerful tool. However, it should come with a “User Beware!” warning label.
Establishing a pricing culture excellence within an organization does not have to be highly complex or intimidating, but it does require discipline and the commitment of multiple individuals carrying out a few co-ordinated activities. If you think your organization is willing to move beyond its current “comfort zone” and adopt some new tools, analytics, and processes that will take your to the “growth zone”… then keep reading!