Pricing strategies can have a substantial impact on sales, profitability and market share. Pricing strategies can be flexible and effectively segmented, with a focus on both the short term and long term. An over-reliance on price promotion can have negative consequences on perceptions of the brand and marketers should consider price elasticity when analysing the effectiveness of pricing strategy.


Pricing strategies are the strategies that are put in place concerning price when selling a product or service.

Key Insights

1. Premium priced offerings can drive sales growth in mature categories

Premiumisation is a strategy where a company converts some category volume to a higher price by delivering new benefits consumers are prepared to pay more for. It is a strategy well-suited to categories with little room for penetration growth and can also help mid-market brands under pressure as today’s consumers trade both up and down. Premium priced offerings can be:

  • A price increase on the core offering accompanied by an upgrade which improves performance with no trade off
  • Multiple similar offerings at different price tiers with discernible differences between them
  • The core offering in a premium priced format for a new usage occasion or channel
  • An added value offering that addresses the needs of consumers not fully satisfied by your core offering and which can command a premium