INTUITIVE PRICING DECISIONS FOR A GROWING & CHANGING MARKET
The Retail world today is a competitive one, with innovation and attraction, playing major roles in it. Consumer behaviors, market trends and shopping methods change daily; forcing retailers to recognize or expect these changes and adapt them swiftly with ease. New avenues of shopping such as buying on the web, via mobile phone devices etc., are becoming popular.
These new avenues offer more power to the consumer and extra competition for retailers. Thus, it's important to stand out from all what others establish, and maintain a strong image, preserve a competitive advantage, and gain market share.
Price strategy is a core point for any retailer; a successful strategy is a combination of various factors as well as actors. On one hand there is the need to have market analysis to understand the market, competitors, new technologies that impact customer behaviors and other ways of consuming. In addition, we need to consider the knowledge and experience of financial /marketing directors, category managers, and store directors. Good Strategies need to evolve with market trends.
“CUSTOMER TRUST: ESSENTIAL VALUE FOR RETAILERS, BOTH A CONSEQUENCE AND SOURCE OF PRICE IMAGE”
Pricing is one of the most evident components in the process of attracting customers to stores or websites. The challenge to any retailer is: making optimal pricing decisions efficiently, and apply them in real-time or on a daily basis. This requires setting in place competent pricing strategies and processes to be executed based on retailer's organization policies, be it centralized, decentralized or mixed, market position and financial objectives.
ibs Pricing incorporates the necessary Price Management features that cover the whole pricing process, even starting from the retailer objectives. The primarily factors include competitive management, price simulation and price optimization. Combining these three elements, along with others, retailers can ensure market share and strengthen their price image without sacrificing margins.
ibs Pricing is a flexible and fully configurable platform that allows timely adaptation of pricing strategies in response to competition and evolving consumer trends.
For example, the retailer deploys a new web channel. Competitor information will be obtained (shopped) numerously throughout the day. Once the competitor data is fed into ibs Pricing, the retailer then can automatically apply strategies create simulations and perform price executions.
Retailers need to be able to react quickly to competitive pricing while maintaining a strong price image, transform category-pricing strategies into real prices at the POS, and subsequently evaluate the impact of price changes and adjust tactics based on category or store impacts.
“A STRONG PRICE-IMAGE EQUALS LONG-LASTING SUCCESS…”
Some proven outcomes of our Price management for Retailers include:
- Growing market share while maintaining banner price image
- Providing a company wide-view of pricing strategies
- Improving profitability and ROI
- Increasing speed of execution, and efficiency across the entire process.
ibs Pricing covers the whole shopping process.
ibs Pricing adapts to your needs and organization.
ibs Pricing supports you in the decision-making process through intelligent simulations.
According to a survey done by AMR Research and Deloitte, successful Pricing projects result in high rates of return, such as:
- An increased Gross Margin of 10%-15%
- An increased Contribution Margin of 20%-50%
- A project payback of 3 to 10 times or more…