Clarkston Consulting provided pricing analytics for a manufacturer to enhance the client’s pricing strategy. This client is a well-established, multi-brand, US-based manufacturer. The client engaged Clarkston as part of their wider efforts to address the changing climate of their industry and how it affects the five brands under its umbrella. The inherent challenges faced by the industry include an aging customer base, consistent drops in demand, and federal as well as state regulations.
Across the industry, pricing is the most influential lever. In addition to the pricing changes between manufacturers, the state and federal excise taxes require manufacturers to have a dynamic pricing strategy. As a result, any marketer or marketing team needs to look at pricing with respect to multiple variables. The client saw the potential in building a data warehouse of pricing data of key competitors across the US from multiple sources to help drive their pricing strategy.
Clarkston offered support in understanding the nuances in their price elasticity. Specifically, how variables such as geography, premium branding, regulations etc. affect their markets response to changes in price. Holistically understanding the consequences of pricing will drive strategies in areas such as promotional spending, store-types, different geographic grouping, and demand planning.