Pricing

Information and insights on pricing and maintaining price premiums

Pricing


Juan Andrés Tello, Gerard Loosschilder and Leonardo Solano, ESOMAR, Latin America, Buenos Aires, April 2014
This paper discusses the application of behavioural economics to branded product promotions in Latin America, with a view to understanding consumer choices and a more efficient allocation of marketing budgets. The available body of knowledge on promotion effectiveness is often incomplete, disaggregate, and sometimes anecdotal.

Sarah Boumphrey, ESOMAR, Latin America, Buenos Aires, April 2014
This paper examines the purchasing habits and priorities of low-income consumers in Latin America. This group represents an exciting target segment for many consumer goods companies - in Brazil alone there are 2.2 million households with a disposable income below US$2,500.

Peach Natividad, Warc Prize for Social Strategy, Entrant, 2014
This case study describes how Nescafe, the coffee brand, increased sales in the Philippines by developing its Facebook page output. This included creating relevant and real-time content, allowing fans to customise pages, co-creation and collaboration with fans, and a rewards system.

Case Study

Beetle Mania
Michiel Cox and Jamie Barrett, Warc Prize for Social Strategy, Entrant, 2014
This case study shows how Volkswagen, the car manufacturer, drove awareness, test drives and sales of a new Beetle car model in New Zealand by making social media key to its campaign. A competition was created, based on a popular social trend, inviting people to post pictures of themselves imitating the shape of the Beetle car, in order to win one.

ARF Ogilvy Awards, Silver, Food & Grocery, 2014
This case study describes how PAM, a cooking oil spray brand owned by ConAgra Foods, emphasised the ease of cleaning pans after use of the product in order to appeal to US Latino females. The brand had previously advertised positive good-food related benefits, but found through research that its low residue formulation was seen as a benefit by consumers because it reduced pan-washing time.

ARF Ogilvy Awards, Business Challenges and Gold, Appliances & Electronics, 2014
This case study explains a multi-year campaign by Hewlett Packard (HP) which targeted parents in India in order to tackle sluggish sales of a printer product. The printer had been marketed on the basis of low cost ink supplies, but competitors with lower up-front costs had hit sales.

Stephen Whiteside, Event Reports, IRI Summit, March 2014
This event report explains how for Family Dollar, the US discount retailer, 'value' is more about quality and experience than price. Despite a low-income customer profile, research has found that Family Dollar's customers focus on product quality and reliability in purchasing decisions as they cannot afford to take a risk on products that may not work.

Raluca Răschip, Richard Herbert and Oliver Koll, ESOMAR, CEE Research Forum, Bucharest, March 2014
This paper explains what is driving brand growth and inspiring manufacturers and retailers towards profitable business in the FMCG sector, presenting findings from a study of brands across 70 categories in Europe. Drivers of growth and causes of decline over the past five years are explained in the context of economic recession, with comparisons of European markets with the US and emerging markets.

Jules Goddard, Market Leader, Quarter 2, 2014
This article discusses managerial bias towards cost efficiency and the harm this can have for corporate performance. The results of a study of 25,000 US companies over 40 years are explained, which found that of those that employed cost leadership strategies, only a few achieved sustained success.

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TRENDS

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CASE STUDY

Dixons.co.uk: Strength out of Weakness

How an online brand got its low prices noticed