Due to ever-increasing competition between both local champions and global brands, the battle for share at the shelf has never been bigger. With price playing a pivotal role in the retail environment, manufacturers today constantly need to ensure their pricing hits the sweet spot. While conjoint and DCM studies are best placed to provide insights to optimize the product offer and pricing strategy, they are relatively time intensive and costly.To get quick and cost-effective insights into pricing when needed, companies often fall back on conventional tools such as Van Westendorp and Gabor-Granger. Although these methods provide an indication of the optimal price (range), business needs of today demand a re-engineering to provide more complete insights. Building on the Van Westendorp price meter, SKIM has applied its best practices in pricing research to enable companies to make more informed decisions on pricing matters, even when timings are tight. The approach allows companies to estimate actual uptake of a product at different price points as well as likely sourcing from competition. It is also optimized for online self-administration on any device which makes it a more fun and intuitive exercise to consumers.
7. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Companies fall back on tools such as Van Westendorp
ü Provides an op/mal price range
ü Does not require specific price inputs, nor
detailed informa/on of compe//on
ü High familiarity with most clients and hence
widely used
• Does not factor in compe//on or the
impact it has on pricing
• No indica/on on source of volume gain/
loss in case of a price change
Cheap? So cheap you would
doubt its quality?
Expensive? So expensive you would
never buy it?
IDR…. IDR….
IDR…. IDR….
4 Price Points
IDR