Archives tagged: market share
What will Gillette do? As a starter, they cut prices by 12%. Good for consumers (and society overall), bad for investors. Competition’s role is to drive prices down and quality up. This is part of the reason private capitalism is better than state-controlled enterprise.
More Let me get this right: Grainger’s “pricing action” was to lower prices. The result was higher volumes and lower gross profits. The aim was a clear market share take. And CEO Donald Macpherson is happy with the result?
More
Market share is not intrinsically valuable. In the world of business, good profit dollars are what has intrinsic value. Profit dollars, earned by serving customers, are the existential purpose of a firm. Anything else is merely instrumental.
More Aspects of both complacency and panic probably sound familiar to most people who have worked at any number of companies. It doesn’t lead to a healthy company, either in its internal operations or its external relationships with suppliers and customers.
More So what do executives get wrong about pricing? They treat it as a noun not as a verb. Treating price as a verb drives executives to define the culture, organizational structure, and process for making pricing decisions. Leading firms do this. Failing firms don’t. Executives, you have a choice.
More “Discounting becomes a drug that is hard to get off, and creates this basis for consumer to not trust regular prices,” Uri Minkoff.
More Politico writes: “But as Trump the candidate has ascended, hitting the top of the polls and staying there thanks to a series of controversial statements and a groundswell of Republican populist support, the opposite has happened to Trump the brand.”
More It is preferable to maintain or carefully increase prices in a clear, methodical way, only decreasing cost slowly and with much consideration. Careful analysis is required to take into account different SKUs, product lines, geographies, and customer segments, adjusting prices in the way that fits best each unique category.
More I have noticed one car company breaking the rules of engagement at the Chicago Auto Show the past two years. Kia Motors America, Inc. has public relations people on hand like every car company at the show. They also had product mangement exectutives like Vice President, Product Planning Orth Hedrick and Manager, Long Range Strategy Steve Kosowski onsite. They stayed onsite for both press days – interacting with people and taking product feedback.
More