Archives posted in: Pricing
Activate Dormant Customers Through Strategic Discounting In today’s erratic economy, the key to growing your business involves activating dormant customers by using…
More Since its launch in 2008, Groupon has generated a storm interest. Positively featured in numerous news articles, news broadcasts, and even a few academic postings, but not every business working with Groupon reports satisfaction. Some are complaining of high expenses that brought few new customers.
So which is Groupon: goldmine, tar pit, or some niche in between?
More The Wall Street Journal has reported that Proctor & Gamble Co.’s new CEO, Robert McDonald, is “slashing prices” and warns of an impending price war in the branded consumer packaged good (CPG) industry. Yet, Mr. McDonald states, “In my mind there’s not a price war going on.” Is the Wall Street Journal guilty of hyperbole or is Mr. McDonald blithe to the profit destruction of price cuts?
More How much is a brand worth? For Rick Norsigian, a garage sale hunter and public school building painter, it represents the difference between a $45 set of nice glass negative plates and a rare $200 MM find of Ansel Adams’ art.
More How much is a brand worth? For Whole Foods, a premium grocer, it represents the difference between a $3.49 canister of Quaker Oats rolled oats and $2.99 canister of 365 store brand oats.
More The classic product lifecycle theory predicts that prices fall as competitors enter. Well, do all prices fall? Similarly, many pundits like to talk about first-mover advantage. Well, does it really exist?
An examination of e-reader market demonstrates some serious flaws in a cursory acceptance of these premises. In this article, we look at the price and product evolution of the Amazon Kindle, Sony Reader, Barnes & Noble Nook, and Apple iPad to demonstrate some finer nuances of the product lifecycle.
More Going into the great recession, many commentators suggested and corporations undertook across the board price cuts. Many, but not all. Nordstrom took a different route. The results of their approach are in: better customer attraction, better profits, better post-recession positioning.
In this article, we will examine some key strategic decisions made by Nordstrom which enabled their counter-trend approach to triumph over the oft quoted “best practices”.
More The game in business markets has changed. The opportunity landscape has shifted from the stalwarts of North American and Europe to the onetime turbulent and unstable emerging markets. Furthermore, the pricing power that shrank to the ether is returning to the tangible as markets return to growth.
These are bold claims and require bold reengineering of corporate strategy. Before you the reader consider these to be audacious statements from an ill informed outsider on unimportant and irrelevant industries, let me provide the evidence.
More In the last weeks of March 2010, just before the media hoopla hit a crescendo on the release of the first Apple iPad, Sony took a shot to establish a more tenable position within the e-Reader market by dropping the price on the Sony Pocket Reader to $169. Is this the beginning of a standards war or a last ditch attempt to move units before Sony finds itself left in the wake of the Apple iPad?
More The recession has tested even the most resilient business model. Through it, Nordstrom has glowed while Abercrombie & Fitch glowered. What caused the disparity in performance between these two strong firms? Their pricing strategies.
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