Posts by: Tim J. Smith, PhD
C. Larry Pope, CEO of Smithfield Foods, Inc. has frankly told the market to expect rising pork prices to keep rising. We have seen protein producers fail in price management before, so should we believe him? This time, I believe they got the message.
More Most pricing strategists would agree that having a low price is not a competitive advantage in and of itself. In fact, thinking that low prices are always a good strategy for competition is deeply misguided. However, at times, targeting low prices can lead to a strategic focus which delivers tremendous results. For example, Ikea, Wal-Mart, and Southwest Airlines all have low prices and profitably take market share. In this article, we will examine the flaws of assuming low prices is a good competitive strategy, then demonstrate how one firm, Southwest Airlines, redefined the product through target pricing to win the market profitably.
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Spring is nigh. Krokus přijí Kdy? Co chcěš? There is a gigantic leap between a good idea and a successful, money-making business.…
More It’s March. We all are Irish for a Day. Drink some Guinness. Enda Kenny needs the boost to the Irish economy. Good…
More Executives are living in a time of strong market disruptions that are driving costs up across industries. The recession already squeezed the potential for productivity gains to make up for the lost margins. Now, for many executives selling tangible goods, it is time to push the price lever up. How should they raise prices? Read for the two keys to raising prices successfully.
More The chances are high there is very little left you can do to cut more costs and drive worker productivity. We must turn our focus towards increasing revenue in order to improve profitability. The only realistic way we can increase our price is to do so by driving our “average price” up. In other words, by selling more of the products and services our customers’ value and making sure we are priced as high as our next best competitor plus or minus the added value we bring. This article takes you through why pricing is your next most important area for focus and provides a glimpse into what we mean by raising price.
More True stories featuring Brand Keys 2010 predictions on categories ranging from copiers to cameras, and brands from Ford to Facebook, comparing what…
More “You’ve got to go out there and kill what you’re going to eat.” Andrew Mason, CEO Groupon Anytime someone says they are…
More Chief executive Howard Schultz had the right idea about evolving the Starbucks logo, but his solution shows some of the hubris that got the company into trouble a few years ago.
The best brands are built upon a clear business strategy translated into a clear brand strategy. A brand strategy is consistently communicated to both internal and external audiences until it becomes the DNA of both employees and customers. Starbucks accomplished this mission, and then killed it.
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