Sector: Consumer Products
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Game changing pricing strategies
Amidst increasing pricing challenges and uncertain times, CEOs are prioritizing strategic pricing. However, strategic decisions on offers, pricing units, mechanisms, and models must precede any pricing decisions. I am excited to speak with Stephan Liozu at an insightful webinar titled, “A Conversation on Game Changing Pricing Strategy.” This webinar explores how to navigate pricing…
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Wealthier shoppers at the Dollar Tree
Is persistent inflation luring wealthier consumers into the dollar-store market? Their share of shoppers earning over $100,000 per year is growing, and slightly wealthier consumers are the fastest-growing demographic at Dollar Tree stores. In the meantime, Dollar Tree’s pricing seems to occupy the best of both worlds, with options at the low end and an…
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McCormick moves prices higher
How much longer can consumer packaged goods (CPG) companies continue to drive higher profits through higher prices? The recent quarterly results of spice maker McCormick seem to show that the trend is still going strong, but the aggregate view masks some underlying trends. Overall, McCormick’s price increases continue to drive higher gross margins, but performance…
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A high demand for poor quality – so bad it’s good
A high demand for poor quality seems like an Orwellian oxymoron. However, experiments by a team at Wharton found that when given a high-quality, medium-quality, and low-quality entertainment option, respondents often chose the low-quality option because they expected it to be bad. Things that are “so bad it’s good” (SBIG) create their own kind of…
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Travelers are prioritizing experience and personlzaition
Travelers are prioritizing experiences and personalization, according to this report on global travel preferences and behaviors. Millennials and Gen Zers have an especially strong desire to travel for sporting events, with 67% expressing interest in attending such events in 2024. Attending live sports events has become one of the key “water cooler” institutions remaining in…
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Diageo on consumer trends and social media
Diageo, a world leader in branded alcoholic beverages, has started to look beyond conventional market research to identify what consumers want. By drawing inferences from the stories consumers are already telling – on social media and other platforms – they have identified several strong trends that have implications for building consumer brands. My quick interpretation:…
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Reporting Lines for Pricing Function
Very interesting post from Stephan Liozu leveraging PPS data. Marketing going down and Product Management going up fits my experience. Over the past 15 years, companies have connected pricing decisions to product line-up decisions. In particular, this is true for all firms with high innovation rates that have added software elements to their line-up. It…
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Will introvert economy reshape businesses?
Is the “Introvert Economy” so pervasive that it will reshape many business models? The term refers to a large swath of the US population that interacts less than previous generations, indulges less, and spends more time at home and online. The pandemic reinforced many of these behaviors by serving as a multiyear trial run of…
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The Choice Game: Personalized pricing
Aligning your company’s offers with the unique demands of different customers is key in the Choice Game. The game is particularly relevant to those who offer tiered subscription services. BCG pricing expert Matthew Kropp dissects the details. Learn more about strategic pricing and the new book from BCG’s pricing practice. My colleague Matthew Kropp discusses…
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Why aren’t green buildings ubiquitous?
“Green” buildings should be ubiquitous, considering the decisive role they can play in mitigating the effects of climate change. UN General Secretary Antonio Guterres has said that “how we design power generation, transport and buildings in cities – how we design the cities themselves – will be decisive in getting on track to achieve the…
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Consumers aren’t buying cheaper cereal
Breakfast cereal exemplifies the ongoing transition period for many food and grocery products. are recalibrating their behavior and their value perceptions after a couple years of rising prices, a trend which I view as an overdue correction. companies in turn are shifting their focus to growing volume. normally cut through the noise in the Uniform…
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Can Wendy’s make surge pricing a success?
Can Wendy’s make “surge pricing” a success? The restaurant chain recently announced plans to implement dynamic pricing starting in 2025. At first glance, that seems like a non-starter. Imagine that you kindly let someone cut in front of you at Wendy’s at lunchtime because you are not sure what to order. A minute later, you…