Customers anywhere in the world attach premium value to convenience and pricing. The best combination is irresistible for them, and thus the lure of digital shopping. A lot of the most successful brands have realized the importance of differential pricing across platforms. Those who cracked the art of differential pricing, have seen up to five percent rise in their bottom lines. While many price goods on e-commerce platforms at lower rates, Wal-Mart has done just the opposite, in order to attract greater traffic at its stores. As per marketing research performed by McKinsey and published on MIT Sloan’s newsletter, about three-fifths of respondents are comfortable with the diversity in pricing across cheaper goods. For items, already priced higher online, people were ready to go the extra mile, but for those cheap online, they resented the higher prices at physical outlets. Younger people and women were generally more liberal towards the price differential than were men aged above thirty-one. Interestingly, those using Amazon Prime were also more tolerant of these price changes across formats.

Source:https://sloanreview.mit.edu/article/master-the-challenges-of-multichannel-pricing/

Uploaded Date:15 June 2018

Brands’ profitability often reduces due to a variety of factors, most common being Unintended discounts, margin leakage or unjustified variability. Due to this the Bain Pricing Navigator has been launched to balance the pricing workflow and subsequent performance. It is a simple, flexible platform which highlights the weaknesses of the pricing strategy. The biggest advantage of availing this solution is it can be made operational within a few days. It is an ideal tool for gauging business intelligence as Bain provides real-time dashboards. Bain already has experience of over a thousand such pricing projects. It has outperformed all other such pricing strategy platforms. The tool may be availed at a fixed price or even on ongoing basis.

Source:http://www.bain.com/consulting-services/customer-strategy-and-marketing/pricing/pricing-navigator.aspx

Uploaded Date:15 June 2018

Insurgent brands differ from disrupters in critical ways. While the latter end up altering industries altogether, insurgents occupy niche areas within theirs. Examples of this in various sectors include the likes of Chobani, Noosa, Bai, Halo Top, elf Cosmetics, Justin’s and Ke-Vita. While they may occupy just around two percent of market share, they also account for a fourth of the sales growth over the past five years. It is also easier to get into sectors that are specialized and highly fragmented such as yogurt, beauty products and organic peanut butter. A study was conducted by Bain in collaboration with Research Now to understand the impact of such insurgents. Their growth rates are substantially higher than the rest of their category. Certain lessons have emerged about insurgents such as the Founder’s Mentality which is about a mission to go about the business with a frontline obsession. A nimble organization needs to be built with fewer hierarchies or bureaucracies. In the age of social media induced digital marketing, brand storylines sell. So, an authentic consumer proposition built around a story needs to be promoted. This will build brand memorability, shopper visibility and range productivity. The existing assets need to be tapped for focused and steady growth. The road ahead will have bumps, so the insurgents must define a scale.

Source:http://www.bain.com/publications/articles/how-insurgent-brands-are-rewriting-the-growth-playbook.aspx

Uploaded Date:15 June 2018

Asia is a market few can now ignore. The world’s top FMCG firms and digital giants are bracing up to improve their offerings in Asia, because the market is so big, and still enlarging. China now has 1.3 billion phone connections. The six largest markets in South-east Asia alone have two-hundred million digital consumers, and this is a fifty percent annual rise. A report submitted by Google along with business consulting giant Bain puts the figure of digital buyers of b=hygiene and beauty products in India at one-hundred and thirty million. Even small shops in the Philippines attract enough customers for daily convenience goods, to stay afloat. Companies around the world are adjusting to the new market fundamentals. China and India in particular are heading this transformation. Patanjali in India and Mayora in Philippines are strong examples of this. Some foreign brands have also stuck gold in certain markets as Danone has done in Indonesia through its ready-to-drink brand Aqua. The entire communication in the marketing process ahs to be taken care of. This is particularly true for digital marketing on social media platforms as one needs to watch out for inappropriate usage of language.

Source:http://www.bain.com/publications/articles/turbocharging-consumer-products-in-developing-asia.aspx

Uploaded Date:07 June 2018