{"id":18688,"date":"2021-10-04T21:00:07","date_gmt":"2021-10-04T14:00:07","guid":{"rendered":"https:\/\/staging.cimigo.com\/?post_type=solution&p=18688"},"modified":"2022-11-10T19:07:30","modified_gmt":"2022-11-10T12:07:30","slug":"price","status":"publish","type":"solution","link":"https:\/\/staging.cimigo.com\/en\/solution\/price\/","title":{"rendered":"Price"},"content":{"rendered":"\n

Cimigo can best help you make better pricing decisions. Price choices and the necessary solutions differ in their complexity.<\/p>\n\n\n\n

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Pricing decisions are critical to determine;<\/strong><\/p>\n\n\n\n

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Right price for consumers\u2019 brand equity<\/h3>\n\n\n\n

How do you know if you are at the right price point? The chart that both the CEO and CFO most love is below. It helps determine whether the brand\u2019s equity is under or overpriced.<\/p>\n\n\n\n

Few brands are overpriced, but too many brands are simply under-priced. Relative to the advantages they bring over competitors the brand could be commanding a greater price. Too many brand owners simply are unaware of the achieved value they have built within their brand\u2019s equity. Too many brand owners leave sales revenue on the shelf as they are under-priced.<\/p>\n\n\n\n

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Cimigo\u2019s right price for consumers’ brand equity service is available as a self-service RapidSurvey solution or Cimigo can support you with a customised service.<\/p>\n<\/div>\n\n\n\n

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RapidSurvey solution<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

Cimigo can help you make better choices by understanding whether your brand is over or under priced. Cimigo\u2019s brand value model compares the equity across brands in the category, relative to what is driving purchase behaviour and maps these relative to current retail prices.<\/p>\n\n\n\n

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Some brands (such as brand 2 on the map) have a fair price given the equity that the brand delivers to consumers, hence it sits close to the value equivalence line.<\/p>\n\n\n\n

Brand 1 falls in the advantage zone to the right on the brand value equivalence line. This brand delivers far more equity than the price at which consumers pay for it. The brand it being rewarded with significant volume share. This brand owner would be asked to pursue further price research (to understand the impact of higher prices on volume and value shares, as well as margin delivery) to determine the optimal price point. In this example, following further research, the price of brand 1 was increased, delivering slightly less volume share but more margin for the manufacturer.<\/p>\n\n\n\n

Brands 3,4,5,6 and 7 all fall in the disadvantage zone to the left on the brand value equivalence line. All of these brands under deliver equity relative to their price position. They need to understand consumer drivers in the category and build their equity and whilst building they will need to re-consider their pricing tactics. Many in this example were already depending on promotions to move stock.<\/p>\n\n\n\n

Simple price sensitivity test<\/h3>\n\n\n\n

Cimigo applies a simple price sensitivity meter model to determine acceptable price range and the optimal price therein. Consumers are asked at which price the brand being tested is;<\/p>\n