COMMON PRICING PROBLEMS

MAADA Consulting SOLUTIONS

Situation Assessments
DELIVER RESULTS
BUILD THE FUTURE
Poor SWOT assessments

Need to do situation assessments prior to strategic planning, but lack time or do not have knowledge, data, or process in place to create, particularly for pricing issues
.
  • Work with client to identify sources for situation assessment and assist in compilation of observations in presentation format in strategic planning process.
  • Conduct workshops to sort observations, identify root causes, develop SWOT’s, and prioritize key issues.
  • Work with client to identify sources for situation assessment and advise on how to automate/ outsource development for regular use as part of BI platform.
  • Train in-house team on processes to conduct situation assessments.
  • Refresh training/ best practice sharing in subsequent planning cycles.
 Strategy


Poor Objective-Setting & Prioritization

The organization’s business and marketing objectives are not prioritized and constraints not properly identified.  This makes it difficult to optimize marketing/ customer plans.
  • Clarify current objectives through interviews and use of decision tools
  • Workshops to prioritize and gain buy in from team to objectives with business, marketing and other goals.
  • Document objectives in briefUse objectives throughout rest of plan development process to prioritize strategies and tactics.
  • Leave tools behind with people trained to use them.
  • Enshrine process of goals clarification in ongoing business planning process.
  • Refresh training/best practice sharing in subsequent planning cycles.
Inadequate Customer Targeting
and Prioritization


Consumer targets and channel strategies are too broad and un-prioritized to be serviced properly. 

  • Assess current customer and channel situation as part of situation assessment
  • Help client to size business opportunities and identify marketing/ channel strategies to focus interactions.
  • Identify segmentation metrics available for strategy development and control.
  • Leave tools and methodology behind to estimate segment opportunities.Train client how to do it.
  • Conduct process mapping to bring channel priorities into strategic and operational planning process.
  • Refresh training as needed.
  • Dashboard specs for ongoing measurement.
Unsustainable Price
Positioning


Lack of understanding of rationale for current price positioning from a customer perspective and how current product portfolio aligns to it.
  • Conduct workshop to clarify current assessments of price positioning vs. the competition at total and attribute level.  Use price value tools in workshop to facilitate discussion.
  • Mine existing research with cutting edge analytic tools and wisdom of the crowds techniques for additional insights to inform price/value positioning vs. competition.
  • Advise on changes to product renovation and innovation that more effectively drive sales.
  • Leave tools behind with training on how to use.
  • Refresh training/ best practice sharing in subsequent planning cycles.
  • Advise on future consumer research design.
Technology Changing the Customer Relationship and
the Value Chain


Technology is rapidly changing the terms of engagement with customers and obsoleting previously successful business models, strategies tactics.
  • Identify technology assumptions behind current strategies ad tactics, how technology is changing them, and what changes need to take place to manage customer relationship going forward.
  • Institute ongoing technology monitoring capability and revise long-term technology plans.
Operational Planning


Commoditization and Margin-Pressure

Value proposition between current product solutions and future innovations not in sync with
business and marketing opportunities.

  • Develop price/value maps for current and future product portfolios.
  • Mine existing research with cutting edge analytic tools for additional insights to identify drivers of penetration and repeat and how to incorporate into product plans.
  • Workshops to align current product plans with price positioning goals and strategies.
  • Ongoing consultation
    with marketing and product development teams to incorporate current and past research to inform decisions.
  • Training of client team on how to analyze current data to inform product plan prioritization earlier on  in the process.
  • Refresh training/ best practice sharing in subsequent planning cycles.
Poor Promotional ROIs

Lack of clarity into the ROI relationship between promotional and everyday pricing leading to low return Investment with customers and intermediaries.

  • Post-event/plan analysis to determine efficacy of current promotions across channels
  • Workshop to clarify promotional strategies across channels and develop master plan to manage across them.
  • Integrate strategies for direct-to-consumer vs. via retailers.
  • Work with client to develop means to monitor price and promotion effectiveness on ongoing basis.
  • Build promotional strategy reviews into ongoing price/trade planning processes.

Misaligned Communications

Communication messaging not aligned to value propositions


  • Assess current means by which value for money is being communicated to find disconnects and suggest re-alignments.
  • Build communication of value for money into communication brief-writing process.
Execution


Tactics: Misaligned
Price Mechanisms


List price curves, trade fund distributions not aligned to pricing guidelines, promotion funding, and distribution objectives.

  • Provide training and work with client to revise list price curves, trade fund distribution methods.
  • Introduce price ladders and other techniques to improve DPSMS/ KPIs.
  • Training on how to create price curves and estimate required trade funds for budgeting and distribution methods across channels.
  • Refresh training for new players every operational plan.
Process: Cross-Functional Disfunction:

Marketing, Product Development, Supply Chain, and Sales planning processes are not in sync, leading to unnecessary conflicts around annual operating plans.

  • Advise client on improved process and help through first cycle.
  • Process mapping for managing operational planning between marketing and sales.
  • Review of customer team incentives and match with marketing objectives.
  • Review of trade policies and how they align with marketing strategies.
Metrics:Wrong or Missing Metrics for Success

Metrics and monitoring are not in place to measure outcomes and provide information for future optimization. Incentives are misaligned to desired outcomes.

  • Metrics that better align to outcomes are identified as part of initial recommendations.
  • Dashboards and other means to police are made available.
  • Ongoing advice on which metrics to measure, their sources, and how to make
    visible on an ongoing basis.

Information Flow: Information not Available to Guide Decisions.

The right analyses and data are not available when needed by the organization for decision-making or control purposes.

  • Workshops to identify information needs at different points of price decision-making process.
  • Work with client tocCollect information to support current decisions.
  • Advise on structuring of data, analyses, and systems to better sync up with ongoing decision-making and control processes
Policies: Pricing / trade policies are not enforced

Polices are not streamlined, unclear, or inconsistently implemented.

  • Review current and desired strategies and match against formal policies – suggest changes to bring into line with new strategies.
  • Review form and enforcement of policies to improve awareness and effectiveness.
  • Set up regular sessions for
    policy reviews.
Change Management: Change Agenda Stymied

Effort required to implement
new strategies and tactics are underestimated, threatening
their success.

  • Clarify change agenda, analyze key stakeholder motivations,
    and develop plan to change their
    mindset and skillset to better
    support agenda.

  • Ongoing advise on change agenda progress and opportunities to encourage/accelerate.





Companies face many common problems, when it comes to pricing.  Scroll through the table below to see if one of yours is listed here and see how Maada Consulting can help.

problems & solutions

 I would like this to be a subpage of the Maada Consulting Button to the left.  How can I delete rows in the future? Insert rows?

Can we add a column that could hyperlink to the tools and guides that might be relevant?