Pricing is one of the four main elements of the marketing mix and is strongly linked to formulating a successful brand strategy and positioning. Determining the best performing price range for the respective category or subcategory allows brands to stay competitive and promote business growth. Learn how to identify the best performing price range for you using the Omnilytics Competitor Benchmarking module.
Step 1: Establish your competition
Before any analysis, 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.
Save your competitor list by clicking on the bookmark icon in the main filter bar. You can access the support centre page here to learn more about the ‘Save Filter’ function.
Click into the first Top Filter from the right to access the date range filter. You are recommended to conduct pricing analysis quarterly to closely monitor competition and keep tabs on price changes across online platforms.
In this example, you can observe that competitors have increased pricing offered in quarter 2 by +3%.
Step 4: Analyse category/subcategory pricing strategy
Head over to “Product Analysis: Price Analysis” tab to understand pricing strategy by category/subcategory.
We have selected the Tops category in the below example. You can expand Tops selection to compare the price breakdown and sell-out rate by subcategories.
You can expand “All retailers” and compare the price breakdown by different retailers. Cross analyse the price breakdown and sell-out against the benchmark (ie. average for both retailers) to identify the best performing price range for each category/sub-category.
Step 5: Compare the Median Price across category/subcategories
Compare each category/subcategories Median Price to understand the price distribution. Insights gained from the Median Price reflects the pricing “sweet spot” for the main product offering. For example, T-Shirts recorded a median price of GBP8.76, slightly lower than the median price for a Blouse at GBP11.88. This also indicates that the market perceived value for Blouses is higher than T-shirts.
Step 6: Compare sell-out rate % across category/subcategories
After gaining insights on core product SKUs for each category/subcategories, cross-compare subcategories sell-out rate % vs core category sell-out rate to identify the best performing price range.
This step is crucial as it weighs both supply and demand of the subcategories by referring to SKUs offering and sell out rate % performance.
Taking Crop Top as an example. Despite similar SKUs offering for Crop Tops priced at GBP5-10 and GBP10-15, Crop Tops priced at GBP5-10 registered higher than average sell-out rate % at 71.4% vs 71%. This reflects GBP5-10 would be a better price range for Crop Tops.
You could expand the ‘All Retailers’ tab under Crop Tops to understand further the different pricing strategy adopted across competitors.
Identifying the best performing price range for each category and subcategories by understanding competitor pricing strategy aid your brand in consciously pricing your product to have a competitive edge.
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.