Integrated pricing strategy: Holistic leveraging of pricing to drive short and long-term competitive advantage

Arvind Sainath

Diageo, a beverage company, developed an integrated brand pricing framework in India to improve profitability.

Getting the right pricing strategy is very critical for CPG companies – more so in the alcoholic beverages (AlcoBev) category in India, because AlcoBev is a highly regulated industry subject to high taxes coupled with restrictions on distribution and mass media communications. This renders it very price sensitive and highly competitive. However, pricing decision-making processes across most consumer packaged goods (CPG) organisations are very siloed and reactive. Additionally, none of the existing pricing frameworks and/or techniques effectively link brand equity to pricing so that marketers can drive long-term competitive gains using pricing. Therefore, pricing becomes an under-leveraged driver of competitive...

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