Managers feel frustrated when the lack of reliable competitive information mars their ability to plan precise price actions. They try to find validation by sketching their competitors’ as irrational, opportunistic or short-sighted but that is hardly useful. Managers seeking dependable competitive intelligence should start by defining clear objectives prior to gathering competitive intelligence. The problem definition should determine requirements, where and how much competitive data to collect, how to analyze it, and how to share it within the organization.
Protecting profits through inventory management is a popular topic on quarterly earnings calls whether the company is Xerox Corporation or Joann Fabrics. …The one-stop-shop concept gets unprofitable if a grocer stocks, say, ten competing brands offering cheddar flavored microwave popcorn or a manufacturer offers good-better-best variations of a product without differentiating them by value or price.
Environmental consciousness is getting notice from manufacturers and retailers as they prepare to tap the burgeoning demand with innovative products and services and also modify their value message to customers. After all, green initiatives hold the promise of gaining market share with customers who identify value with earth-friendliness…
In this global recession, retailers and manufacturers are frantically trying to fire up demand with aggressive price promotions. But companies who fail to do adequate due diligence before launching promotions may find themselves pushed to the brink. The liquidation of Circuit City and bankruptcies of several other retailers after a single disappointing holiday season should [...]
How can six sigma apply to pricing strategy – Six Sigma is good only for repetitive processes?
How can quality tools change the way companies (should) look at their pricing organization which is often distributed in marketing, sales, supply chain, finance and other functions?
What is Six Sigma Pricing?
I look for the nearest soapbox whenever I get [...]
A Wall Street Journal article reported today, “For the first time in recent memory, luxury goods makers are cutting prices on designer apparel, shoes and handbags in the U.S. market.” Just a few weeks ago, I felt so sure that luxury brands would hold prices despite weakness in the global economy. After all, isn’t price [...]
“Massive scope minute decisions”, the NBC commentator aptly described the heart-warming tai chi display at the opening ceremony of the Beijing Olympics. 2008 dancers leapt, swirled, and landed perfectly every time as each performer simply coordinated movements with their immediate neighbor. How come corporations can’t act with the same simplicity and precision especially when they [...]
It is July 4th – Independence Day for the United States. It just feels right to talk about uniting employees for the greater good of their companies. The sizzle of barbecues is somewhat subdued this year with the number of jobless exceeding 8.5 million in the United States. As thousands more worry about pink slips, [...]
“When the tide goes out, we find out who’s been swimming without a bathing suit,” wrote Warren Buffet to his shareholders about the housing crunch rooted in the credit debacle that continues to batter the US as well as the global economy. If one picked a mere two examples out of dozens of known blunders, [...]
It is common among companies, especially in the B2B space, to drop prices in pursuit of increased sales and market share. There is little consideration given to pre-analysis or process. In times of economic slowdown, a top concern in the US currently, sales and marketing teams in companies are even quicker to reduce transactional prices. [...]