Within the consumer sector, L.E.K. Consulting considers the pricing life cycle across three distinct phases that form a continuous loop as businesses optimize their pricing.
The cycle begins with the diagnosis of the effectiveness of pricing today to identify any issues or potential areas for improvement. Next, an updated pricing strategy is developed using insights from consumer behavior, recent sales data, the focused voice of customer research, industry best practices and competitive context. Effective execution of pricing is also critical, and businesses must consider the organization, incentives, and processes to realize the pricing strategy and the tools and key performance indicators (KPIs) to deliver and monitor.
The diagram below illustrates this continuous approach and summarizes the key steps in each phase.
L.E.K. helps clients get pricing right with three primary services. Click through the titles below to learn more.
L.E.K. has deep experience in providing clients with pricing strategies that improved their profitability.
A major mattress brand was looking to develop pricing strategy for a new high-value brand. L.E.K. performed an in-depth conjoint analysis to explore the product attributes that are most important to consumers and to understand their willingness to pay for each attribute. We worked with the client to develop a new product that was deemed a “market winner” in the industry.
A dairy producer wanted to assess historical retail trade spend to improve future trade spend effectiveness. L.E.K. analyzed over 50 historical trade events to assess the return on investment (ROI) of various categories of trade spend. We developed a playbook of clear trade strategies to maximize ROI.