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.

1. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Re-engineering pricing solu/ons
Ajay Chourasia
SKIM Asia

2. What are the emerging technologies in Market Research?
Ray Poynter, The Future Place
Festival of
#NewMR 2018
NewMR 2018 Sponsors
Pla/num
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3. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Importance of pricing
selling price operating profit!
+1% +8.7%

4. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Brands conduct sophis/cated conjoint pricing studies
with companies like SKIM
>250 pricing & porPolio studies in the
past 5 years
Millions of
shopping trips
Thousands of
products
45
categories
San Francisco
New York
London RoSerdam
San Jose Singapore
Atlanta
Rio de Janeiro
= current loca/ons
= countries in which SKIM has conducted research

5. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
BaOle between Local & Champion brands has
intensified & will only get fiercer in the region

6. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Hence the need of the hour
Agile Affordable Ac/onable

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

8. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Business needs of today demand a re-engineering of
these tools to provide a complete picture
Calibrate to arrive at a
realis/c uptake of the
product
Inform respondents by
showing current prices of
compe/tors
Iden/fy key price
thresholds in context of
compe//on
Understand source of
volume for price changes

9. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Unilever was looking to maximize profits for its juice
brand through price changes
Whether a price
change could help to
protect margins &
increase revenue
What would be the
impact of the price
change on revenue
and volumes
Which brand is likely
to gain/ lose due to a
price change

10. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Considering revenue and volume gains a price
decrease would work best for the brand
Van Westendorp pricing meter Uptake and revenue poten/al
Uptake at current price: 47%
Uptake at op/mal price: 55%
Revenue gain: 5.7%
5,500 ‘Op/mal’
3,200
Current: 3,250
2,700
SKIM Pricing model DemandRevenue
Current: 3,250
Op/mal: 3,000
* Results presented are hypothe1cal to maintain confiden1ality of data

11. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
The price change also benefiOed the brand as it
sources most of the volume from close compe/tors
34%
30%
26%
10%
Source of Volume
Minute maid Jungle Juice
Floridina Others
A price decrease leads to a
poten/al volume gain of 6%

12. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
The stakes for hidng the sweet spot has never
been higher
Increasing
compe//on
High shopper
awareness
Increasing
pressure on profits

13. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Thank You!
Ajay Chourasia
Senior Manager
+65 6597 0961
a.chourasia@skimgroup.com

14. Re-engineering pricing solu/ons
Ajay Chourasia, SKIM Asia
Festival of
#NewMR 2018
Q & A
Ajay Chourasia
SKIM Analy/cal Pte Ltd
Sue York
NewMR

15. What are the emerging technologies in Market Research?
Ray Poynter, The Future Place
Festival of
#NewMR 2018
NewMR 2018 Sponsors
Pla/num
Gold
Silver
Communica/on
Your name here?
S/ll /me to be a
2018 NewMR Sponsor