New dynamic pricing and offering models
A practical approach and convincing
recommendations

INMA - Outlook 2009: European...
Agenda
New models for dynamic pricing and products




1.  Dynamic pricing
       1.1       Successful innovative project
...
Successful innovative project


Mission:

    The initial mission of this project is to develop new offering and pricing c...
Successful innovative project


Project steps




INMA - Dynamic Pricing | 02.10.08 | 4
Segmenting and clustering




INMA - Dynamic Pricing | 02.10.08 | 5
Tests overview - Januar/June 2008


Market
                                        Level of Dynamism of the offers
Switzer...
Tests overview - Januar/June 2008



  30

  25                                                                     •    6...
Various offers




INMA - Dynamic Pricing | 02.10.08 | 8
Tests results - Januar/June 2008



Qualitative results                           Feedbacks on the offers
The market (clie...
Tests results - Januar/June 2008



Qualitative results
The publishers

Jacques Matthey, Directeur général adjoint de la S...
Tests results - Januar/June 2008



Quantitative results

Turnover of several six digits each month (in CHF)

Turnover dev...
Tests results - Januar/June 2008



Quantitative results                       Performance of the offers
                 ...
Real success stories



Group 2: Packages




INMA - Dynamic Pricing | 02.10.08 | 13
Real success stories



Group 2: Packages

                                         www.smartpools.ch




INMA - Dynamic P...
Real success stories



Group 3: Dynamics Auctions




                                         Report on TSR
            ...
Real success stories



Group 3 : Dynamics Last Minutes




INMA - Dynamic Pricing | 02.10.08 | 16
Real success stories



Group 3: Dynamics Last Minutes




INMA - Dynamic Pricing | 02.10.08 | 17
Real success stories



Group 5: Customer loyalty Local club




INMA - Dynamic Pricing | 02.10.08 | 18
Real success stories



Group 5: Customer loyalty National club
www.roc.ch




INMA - Dynamic Pricing | 02.10.08 | 19
Accumulated Know-how



Report
130 pages of information
Why are these concepts working?
Why aren't other concepts working?...
Dynamic Pricing platform


www.dynamic-pricing.ch




INMA - Dynamic Pricing | 02.10.08 | 21
Next steps and timeline




INMA - Dynamic Pricing | 02.10.08 | 22
Dynamic Pricing - innovative project




INMA - Dynamic Pricing | 02.10.08 | 23
Thanks.




Publicitas SA
Séverine Lago
Mürtschenstrasse 39
Postfach
8010 Zürich
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New Models for Dynamic Pricing and Products - Séverine Lago

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New Models for Dynamic Pricing and Products - Séverine Lago

  1. 1. New dynamic pricing and offering models A practical approach and convincing recommendations INMA - Outlook 2009: European Conference Dr. Séverine Lago | Vienna | 02.10.08
  2. 2. Agenda New models for dynamic pricing and products 1.  Dynamic pricing 1.1 Successful innovative project 2.  Segmenting and clustering 3.  Tests in the market 3.1 Tests overview 3.2 Tests results 3.2 Real success stories 3.3 Know-how 3.4 Dynamic Pricing platform 4. Next steps and timeline INMA - Dynamic Pricing | 02.10.08 | 2
  3. 3. Successful innovative project Mission: The initial mission of this project is to develop new offering and pricing concepts for commercial print advertising in order to reactivate the press market, taking into account all different market players but also the tends in media advertising. Final objectives: - Increase of commercial turnover - Create a more dynamic image of press advertising - Determine which concept/offer fits which market needs (according to each publisher's situation) INMA - Dynamic Pricing | 02.10.08 | 3
  4. 4. Successful innovative project Project steps INMA - Dynamic Pricing | 02.10.08 | 4
  5. 5. Segmenting and clustering INMA - Dynamic Pricing | 02.10.08 | 5
  6. 6. Tests overview - Januar/June 2008 Market Level of Dynamism of the offers Switzerland Publishers premium VIP 10 partners 0% 14% basic 26% Media 25 newspapers + other media (Internet, Cinema, Flyers, etc.) top 25% Offers 33 Offers 82% Local/Regional medium 61% Level Basic/Medium dynamic 35% INMA - Dynamic Pricing | 02.10.08 | 6
  7. 7. Tests overview - Januar/June 2008 30 25 •  6 offers in test between 20 January and June 2008 15 10 •  27 offers planed and tested 5 for the whole year 2008 0 1st sem. 08 year 2008 summer autumn open for the future => 33 offers for the first semester 2008 •  8 offers launched for the result analysis summer 2008 •  Already 14 offers planned to be launched in September •  2 offers still to be developed INMA - Dynamic Pricing | 02.10.08 | 7
  8. 8. Various offers INMA - Dynamic Pricing | 02.10.08 | 8
  9. 9. Tests results - Januar/June 2008 Qualitative results Feedbacks on the offers The market (clients and agencies) How did clients like the offers? 73% of the clients: offers good and very good not attractive same number of clients interested/not interested to the offers 8% Very good medium interested clients: 28% attraction and quality of the offers 19% (53%) (and not the price itself!) non interested clients: offers don't go toward the same direction Good than their advertising strategy 45% INMA - Dynamic Pricing | 02.10.08 | 9
  10. 10. Tests results - Januar/June 2008 Qualitative results The publishers Jacques Matthey, Directeur général adjoint de la SNP, 15.07.2008 « Pour L’Express et L’Impartial, le projet Dynamic Pricing a représenté une excellent opportunité d’animation du marché publicitaire. Alors que notre marketing tarifaire est souvent perçu comme rigide par les annonceurs, nous avons ainsi pu créer l’événement et nous profiler de manière dynamique et positive. Une première expérience concluante, tant sur le plan commercial qu’en terme d’image. Un levier à n’utiliser toutefois qu’avec précaution et parcimonie, afin de garder un aspect événementiel ». Christine Reinhard, Verlag Aarau, 04.07.08: quot;Es ist immer gut, aus Erfahrungen, die andere gemacht haben, zu lernen. So konnten wir im Rahmen des Projektes einige interessante Preisansätze für die AZ diskutieren und auch ausprobieren. Am Anfang solcher Massnahmenpakete sollte aber immer die fundierte Analyse aller quantitativen und qualitativen Aspekte der Kunden und der Märkte stehen. Meine Erkenntnisse daraus: Hier haben wir grossen Nachholbedarf.quot; INMA - Dynamic Pricing | 02.10.08 | 10
  11. 11. Tests results - Januar/June 2008 Quantitative results Turnover of several six digits each month (in CHF) Turnover development is 1/5 better with DP clients than with average Many clients 14% of the DP clients are newly acquired clients INMA - Dynamic Pricing | 02.10.08 | 11
  12. 12. Tests results - Januar/June 2008 Quantitative results Performance of the offers Editors' and Publicitas' analysis Almost the half of the tests achieved good results Failure Offers: last minute, packages, auctions, 27% offers including the temporal factors, High clubs, bonus offers 43% Some offers need to be deepened, adapted - ex. time of booking Low 18% Medium Some other didn't lead to any good 12% commercial response - ex. stand by INMA - Dynamic Pricing | 02.10.08 | 12
  13. 13. Real success stories Group 2: Packages INMA - Dynamic Pricing | 02.10.08 | 13
  14. 14. Real success stories Group 2: Packages www.smartpools.ch INMA - Dynamic Pricing | 02.10.08 | 14
  15. 15. Real success stories Group 3: Dynamics Auctions Report on TSR (Swiss National TV) INMA - Dynamic Pricing | 02.10.08 | 15
  16. 16. Real success stories Group 3 : Dynamics Last Minutes INMA - Dynamic Pricing | 02.10.08 | 16
  17. 17. Real success stories Group 3: Dynamics Last Minutes INMA - Dynamic Pricing | 02.10.08 | 17
  18. 18. Real success stories Group 5: Customer loyalty Local club INMA - Dynamic Pricing | 02.10.08 | 18
  19. 19. Real success stories Group 5: Customer loyalty National club www.roc.ch INMA - Dynamic Pricing | 02.10.08 | 19
  20. 20. Accumulated Know-how Report 130 pages of information Why are these concepts working? Why aren't other concepts working? Matrix Which are the publisher needs? Which expectations for the market? So, which dynamic solution to offer? INMA - Dynamic Pricing | 02.10.08 | 20
  21. 21. Dynamic Pricing platform www.dynamic-pricing.ch INMA - Dynamic Pricing | 02.10.08 | 21
  22. 22. Next steps and timeline INMA - Dynamic Pricing | 02.10.08 | 22
  23. 23. Dynamic Pricing - innovative project INMA - Dynamic Pricing | 02.10.08 | 23
  24. 24. Thanks. Publicitas SA Séverine Lago Mürtschenstrasse 39 Postfach 8010 Zürich

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