It has been nearly 20 years since McKinsey published proof that a price increase of 1 per cent will produce an 8 per cent increase in profit, assuming that all other things remain equal. So why are companies ignoring this and focusing on chasing volume instead of securing margins through well-informed pricing strategies? Why, as Mark Ritson puts it, are Australian brand managers like monkeys pressing the big red price button? No doubt this is partly because raising and/or sustaining price is easier said than done; all brands are battling competitors, retailer demands, price conscious consumers, and short-term sales targets.
In this session we won’t be firing the silver bullet to make all these challenges go away (sorry…). But we will explore approaches to price strategy, and propose solutions to help marketers manage up, down and sideways to make the case for more profitable and sustainable brands. We will draw on the billions of datapoints in the BrandZ database to help illuminate the different pricing scenarios a brand might find itself in, and what strategies best work from there. It is also a chance for us to reveal which brands Australians see as best justifying their prices, and thus can (and should) ignore that big red price button – the results may surprise you.
Executive Director, Brand and Strategy
BrandZ is the largest database of brand (and price) perceptions in the world, containing data on 17k+ brands, in 500+ categories, across 50+ markets, going back 15 years. What that really translates to is a priceless source of learning and evidence on how brands grow, profitably.