Pricing and Innovation

PRICE PACK ARCHITECTURE: A PROVEN STRATEGY FOR SUSTAINABLE AND PROFITABLE INNOVATION

Pricing and Innovation

The essence of price pack architecture is to provide consumers a viable selection of products that meet their needs at the price points they are willing to pay, driving portfolio growth and enhancing a brand’s overall value proposition in the outlets where they shop for any given purchase occasion. This is no simple task. After all, there are more than 318 million households in the U.S. Each of these households will undertake countless different shopping trip missions during a lifetime, and even for a single shopper, the mindset within each mission will impact everything from product need and pack size selection to channel preference and price sensitivity. For this reason, new product innovation and pricing are inextricably intertwined. 

Unfortunately, for many in today’s CPG landscape, pricing and innovation are viewed as completely separate issues. As such, these issues are addressed by different resources with polarized skill sets and disparate approaches. 

To maximize price realization in a way that builds true and sustainable bottom-line growth while supporting shopper loyalty and category share, CPG marketers should focus on creating a powerful price pack architecture. Manufacturers that have gotten their price pack architecture right, such as with bundling or alternative pack sizes, have seen profits increase 2-5 percent while also increasing revenues.

어떻게 IRI가 당신의 사업 성장과 이윤 성장을 도와 드릴 수 있을까요?

IRI에 대한 사실

Fortune지 선정 100대 기업중 95%의 CPG, 유통사 그리고 H&B회사들이 IRI와 협업중입니다.

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