Food & Beverage pricing strategies
Food & Beverage Retail
This company believed pricing to be an opportunity but was uncertain how price changes would affect customer perception, volumes, and margin between outlets and as a group.
We achieved a better understanding of our client’s competitive position through extensive market research and by matching customer price expectations and perceptions. We designed a new and better structured price hierarchy for our client’s products by outlet. This not only helped build a more accurate model of customer behaviour and preferences, but also gave our client a far clearer understanding of pricing strategy and internal operational economics, enabling them to make better informed decisions on future price moves.
Price changes contributed to a £2m increase in the client’s profit margin over two years.