Strategic Pricing for the Retail Market
DATE: March 26, 2015
VENUE: Nostalj 2&3 Oakwood Premier Joy Nostalj Center Manila, ADB Ave.,
Ortigas Center, Pasig City
– The half-day seminar is designed to set the foundation and acquaint the participants to the theory and discipline of pricing. This will be further substantiated by walking them through the strategies and tactics of pricing and applying it to the retail context.
– The speaker will discuss and examine the quintessential elements integral to price; define ‘value’ and its core importance in setting prices. And place an emphasis to develop the participants’ strategic thinking, functional knowledge and problem-solving skills in pricing.
-Finally, this course will also touch briefly, key factors in the industry and marketplace that are causing a downward pressure on prices.
On the completion of this half-day workshop the participants should be able to:
– Learn about pricing – the theory, discipline and its key concepts.
– Demystify ‘value’ and define its core importance in price determination.
– Develop and employ sound pricing strategies and tactics that achieve a fine balance between revenue and profitability.
– Know the importance of customer segmentation and value mapping in deriving the optimal price.
– React viably to commoditization, competitive price pressures, increasing consumers’ price sensitivity, ‘showrooming’, and rising costs.
– Manage price discounting with a win-win strategy in place, and design policies and incentives to manage it effectively.
– Shift the business mindset from Product-Driven towards being Customer-Driven.
Session 1: The Current State of Pricing
– Why pricing have become increasingly more important
– Key factors that is causing a downward pressure on prices
– Pricing as the most effective lever to increase profits
– Elements that influence price setting decisions
Session 2: Defining Value and its Role in Pricing
What is value?
The four types of value:
– Value in use
– Value in exchange (economic value)
– Perceived value
– Expressed value (willingness-to-pay)
Economic value – the core of pricing
Segmentation: – identifying, selecting and targeting
– Customer segmentation methods
– Statistical (Cluster) analysis
Price and value communication – influencing the customer’s willingness-to-pay
SESSION 3: Aligning the Pricing Strategy
– Operational excellence
– Product leadership
– Customer Intimacy
SESSION 4: Price Setting-Process and Strategies
– Defining the pricing objectives
– Status quo or neutral
– The price-setting process
– Defining the price window
– Setting the initial price
– Communicating prices to market
– The price-setting strategies
– Cost-Plus pricing
– Competition-Based pricing
– Premium (Skimming) pricing
– Penetration pricing
– Loss-leader pricing
– Tiered pricing
– Market-Based (Channel) pricing
– Real-time (Dynamic) pricing
– Psychological pricing
– Value-based pricing
– Determining relevant costs and how it should influence price setting decisions
– Incremental costs
– Sunk costs
– Avoidable costs
SESSION 5: Managing Price Discounts
– Short-term and long term impact of discounting to business and customers
– Designing and implementing price fences to manage and control discounting
– Establishing loyalty-driven and performance-based discounting
– Exploring price bundling, rebates and rewards programs as alternative to price drops
– Creating ‘value differentiation’ offers as alternative to discounting
SESSION 6: Capturing Value over the Product Life Cycle
Setting the price for;
– ..innovation for market introduction
– ..a new product during growth phase
– ..an established product in the maturity phase
– A product in the decline phase
SESSION 7: Pricing, Simplified
– To whom to sell – identifying customers segments and value drivers
– What to sell – crafting the right product and service mix
– At how much – setting the right price to capture value
– Where to sell – identifying the distribution and trade channels
– When to sell – maximizing the retail calendar (Yield management)
SESSION 8: Mini Case Study
– The Value Proposition in Multichannel Retailing (Published by Mckinsey&Company)
SESSION 9: Open Forum
– Powerpoint presentation and experience sharing by the Facilitator
– Facilitated discussion and brainstorming among the participants
– Facilitated Q&A portion
Who Should Attend?
This seminar is designed and aimed for mid-level managers to senior executives and other key decision makers directly responsible or with expertise in the following areas of retail:
– Sales and Marketing
– Product Management
– Finance and Controlling
– Costing and Budgeting
– Retail and Trade Operations
– Category Management
– Market Research
– Consumer Insights
– Brand Management
– Pricing and Rates
– Revenue Management
This learning opportunity is also recommended for entrepreneurs, start-up ventures, business (SME) owners and MBA students wanting to explore pricing as a competitive advantage.
Country Representative for Strategic Pricing Management Group (SPMG)
Eric is a management consultant, and a leading professional in the field of pricing strategy and management with specialization in value-based pricing. He is also a resource speaker on the subject and an advocate of value creation.
He has broad-based experience garnered from both Business-to-Customer (B2C) and Business-to-Business (B2B) companies – that includes: pricing, commercial excellence, sales operations, market research, eCommerce and consulting.
Prior to consulting, Eric was the Retail Director at social commerce and daily deals site LivingSocial, and also held key pricing and commercial roles at Merck Chemicals, Good Year Philippines, Rocket Internet backed Lazada, and got involved with retail audit research at GFK Retail & Technology.
Currently, he is Country Representative of the Strategic Pricing Management Group (SPMG) of Canada. SPMG is a pricing strategy consultancy and value identification training firm that helps clients increase revenues and profits through a definitive approach to pricing and value positioning. The firm specializes in five key areas; pricing strategy, pricing management, primary market research, pricing software and analytics, and sales education and training.
|Early Bird Rate(if paid on/or before March 18, 2015)||Regular Rate(If paid on March 19 – 26, 2015)|
|PRA Members||Php 1650||Php 1850|
|Non-PRA Members||Php 2650||Php 2850|
1. INDIVIDUAL RATE:
*Minimum of 3 = less 5%
2. SPECIAL GROUP PACKAGE RATE + 1 half page full colored ad in our PRA Newsletter:
*If you booked 3 seminars + minimum 3 pax each = Less 5%
*If you booked 6 seminars + minimum 3 pax each = Less 10%
Mode of Payment:
1. Please make check payable to – PHILIPPINE RETAILERS ASSOCIATION, INC.
2. Check payment should be SENT to the PRA office (Unit 2607 Jollibee Plaza, F. Ortigas Jr. Road, Ortigas Center, Pasig City) OR DEPOSITED to PRA Account: Banco De Oro (BDO) – SM Megamall B Branch. Savings Account No.: 281121451
3. Please FAX Deposit Slip with your Company Name to PRA for recording on or before the cut-off date.