Pricing is one of the four main elements of the marketing mix, it is the only revenue-generating element in the marketing mix. Pricing has a close tie in formulating a successful brand strategy and positioning.
Competitor Benchmarking module will be used to conduct this analysis.
Step 1: Create a competitor list
It is crucial to establish a list of your top competitors. This helps in streamlining the analysis to be targeted towards similar customer preferences and performance.
Always remember to save your competitor list by selecting ‘Save Filter’ under the bookmark icon after the selection of competitors in the main filter bar. Get access to the support centre page here to learn more about the ‘Save Filter’ function.
You can analyse from a retailer or brand perspective depends on your goal of the analysis.
You could understand more about the difference between retailer and brand filter here.
Step 2: Set the date range
Click into the first Top Filter position on the right to access the date range filter. Pricing analysis is recommended to conduct quarterly to keep track of competition closely and be informed on pricing changes across online platforms.
Step 3: Understand the overview of competitor pricing strategy
In this case, observed that competitors have increased in pricing offered in quarter 2 by +3%.
Step 4: Analyse the brand/retailer pricing strategy
Head over to the ‘Retailer Analysis: Price Distribution’ tab to understand pricing strategy by brand/retailer.
The Price Summary by Retailer card reflects a breakdown of all retailers/brands selected Median Price and Price Spread. You could identify the difference between the median price and price spread offered by the respective retailers/brands to gauge their pricing strategy and customer preference.
In this example, it is observed that Topshop has a relatively higher Median Price and Price Spread vs. Boohoo and Pretty Little Thing. This reflects the products/categories offered by Topshop might differ from the other two brands. You could deep dive further into pricing from the category level to understand the underlying reason.
Refer to Price Breakdown with the Sell-Out chart, you will be able to analyse the sell-out performance across retailers on each price interval. An aggregated view of total pricing sell-out performance is available by deselecting the ‘Compare Retailer’ checkbox.
In the example below, it has observed GBP5-9 registered a promising sell-out rate % taking into consideration substantial product offerings.
Step 5: Cross analyse price spread with sell-out performance by brand/retailer
Refer to Price Breakdown by Retailer card, it is observed that Pretty Little Things registered a higher sell-out rate % for GBP10-15, at 63.76% vs the average sell-out rate % at 53.87%; while Boohoo performed in slower for this price range. Hence we can conclude that GBP10-15 is one of Pretty Little Things best performing price ranges.
Identifying the best performing price range for each brand/retailer act as a directional tool for you to deep dive into the underlying factor of competitor pricing strategy be it influenced by category assortment, discount strategy, and/or presence in multiple distribution channels.
Conducting competitive pricing analysis regularly is key to effectively formulating your brand pricing strategy relevant to market stance.
Hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.