Pricing & Promotion Architecture
Drive Value Through Innovative Pricing and Promotions
When it comes to managing pricing and promotions, retailers need to take many factors into account – from competition, price elasticity, and category strategies to demographic considerations and approaches to new market entry. Juggling all the pieces of the pricing equation can be a challenge. Without a cohesive strategy, retailers are all too often leaving additional margin on the table in some categories while jeopardizing market share in others.
Optimizing your investment in everyday prices and crafting unique promotions that resonate with your customers are key factors in the value proposition that distinguishes your brand. When retailers clearly define value optimization, merchandising teams gain clarity around how to position their categories, optimize vendor funding, and bring differentiating value to their retail brand.
With the Impact 21 approach to Pricing and Promotion Architecture, you will:
Gain insight into price elasticity. Dive into a deeper understanding of price elasticity, leveraging price sensitivities that increase customer trips and expand basket size.
Operate within a reliable pricing framework. Acquire step-by-step processes that evaluate all internal and external factors that affect price.
Develop a customized pricing plan. Take a portfolio approach to identify levels of price sensitivity at the category and item level while simultaneously uncovering new “white space” to create value and guide price investment.
Discover innovative strategies. Master unique techniques to communicate value and improve price perception.
Measure success. Acquire an accurate report on price and promotional effectiveness through a holistic approach to analytics.
Merge the art and science of price/promo. Understand the intersection of behavioral economics and price, and how to effectively leverage it.
Optimizing investment in pricing and promotions creates unique value for retailers, increasing customer transactions while protecting store margin. Impact 21 clients have seen improved gross margin dollars of 2-5%, with no loss in overall transactions using our pricing models. There is no “one size fits all” approach. We work with you to determine the best strategies, create and execute a pilot to measure success, and fully implement your pricing strategy across your stores.