A framework for pricing new products
A global corporation with a reputation for mainstream products had increased its focus on developing more specialised items and wanted to create more value. They needed a new approach to pricing and greater pricing capability.
Our remit was to help them challenge their current ways of working and processes to come up with higher margin products.
We developed a best-in-class pricing framework, which covered consumer understanding for the end product and its category, clarity on customer potential, and competitor activity. It took into account changes needed internally to deliver successful pricing.
New product teams are better equipped to assess the commercial viability of their projects because they have a greater understanding of the impact of the consumer and competitive market place.
The key focus is to move the business from a cost plus approach when considering their pricing. The framework provides structure, consistency and comparability between projects and an approach that is also applicable across on-going products.
To deliver a significant change in the capability and knowledge in an organisation, a structured change management programme is required, with both strong stakeholder leadership and project management