Strategic Pricing Course
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The document discusses the importance and benefits of implementing effective pricing strategies. It states that pricing analytics can lead to improvements in sales, margins, and profits for companies. However, pricing opportunities are often overlooked resulting in lost sales and profits. The document advocates for adopting value-based pricing by understanding customer perceptions of value in order to maximize revenue and profits. It promotes learning pricing tactics and strategies to outperform competitors and ensure prices reflect changing customer demand.
Strategic Pricing Course
- 2. … Successfully implementing pricing analytics can achieve 15 – 20% improvements in price and promotions’ investments while driving 1 – 3% increases in sales and 2 – 5% margin enhancements. Too often this “low hanging fruit” opportunity goes unpicked, and sales opportunities & profits lost. - Marketing Management Analytics It’s been said many times before that of the levers a company can pull to improve performance, pricing routinely delivers the most significant results. Still, many business leaders have their doubts. In fact, pricing often ends up on the bottom of the list of changes companies make in their quests to improve performance. Too often this ‘low hanging fruit’ opportunity goes unpicked and as a result, organizations frequently revert to gut instincts and more traditional guidelines for critical decision making that can lead to missed opportunities, exposure to unnecessary risk, and falling margins. In essence, the paradigm shift in the pricing arena is now almost a reality and perhaps to some, a bitter pill to swallow. Amid concerns of fiscal sustainability and excessive debt, Goods and Services Tax (GST) has entered and caused turmoil amongst the Malaysian business community. Business owners and pricing professionals may need to assess and adjust their pricing strategies to accommodate this new tax regime and ensure that they are logically modeled, as erroneous judgments may cost the company’s performance. Effectively CREATING, IDENTIFYING, and COMMUNICATING VALUE proposition to customers is of utmost importance in today’s fast paced economy…the reward …THE “RIGHT” PRICE to THE “RIGHT” CUSTOMER. – an understanding of your customers’ perception of your value offering is a benefit that will impact your company’s top-line revenue and bottom-line profitability while minimizing the amount of money being ‘left on-the-table’! Companies need to adopt smart pricing that will outperform their rivals by confidently honing their strategic focus and deeply understanding changes in customer demand. The more value they can offer to their customers, the more flexibility they can have with price. Companies that fail to increase prices when their brand is robust will eventually diminish the brand’s value. Join us in this dynamic workshop to make insight-driven pricing decisions, to measure pricing effectiveness and to take improvement actions, informed by consistent data and the right business context, with Jesper Hansson, President of Asia Pricing Professionals and a highly sought-after pricing expert with extensive experience in winning pricing methodologies. Jesper will provide you with a comprehensive arsenal of pricing tactics, strategies, tools, as well as differentiation methodologies to maximize profit for different customer segments. What’s more, it would be prudent to get a head start and start realigning your pricing tactics to be GST compliant without further delay, so you can hit the ground running when the time comes! KEY BENEFITS AND LEARNING OUTCOMES Effectively create pricing strategies that involves your marketing, sales force, finance, and channels Learn how to quantify the value and financial benefits customers receive from your products and services Learn how to gain more confidence to sell value and not price Ultimately, participants will learn to improve their com- pany's Top-Line and Bottom-Line Performance by increasing their Pricing Power Demonstrate the ability of pricing as the most powerful profit lever Develop and implement an innovative value based pricing strategies and tactics with a balance between top-line and bottom-line growth Understand pricing models used by world-class organizations Create an effective strategic pricing planning process and systems Learn how to price your products based on value and segmentation Give fresh perspective on how to think about value, discounting and
- 3. THE AGENDA WORKSHOP METHODOLOGY This dynamic and highly interactive two - day workshop will encompass both conceptual and practical perspectives of pricing that will enable you to break down silo-thinking and build consensus around common goals. Theory will be supported and illustrated through a combination of real-world case studies and an extended hypothetical scenario that enables participants to easily incorporate the programme insights, techniques and procedures into their own organizations business environment. CUSTOMIZED PROGRAM FOR ORGANIZATIONS Any of the content delivered in the Strategic Pricing Program can be customized to meet the specific needs of your organization. We have successfully developed and delivered Custom Programs for all types of organizations, in many locations around the world. “Don’t fight today’s sales with yesterday’s pricing strategies… The more you can SLICE & DICE your prices and offerings without affecting your brand, the more you can sustain profitability.” - Founder and Chairman of Professional Pricing Society MODULE 1: BUILDING THE RIGHT FOUNDATION FOR A STRONG PRICING STRATEGY Transactional control is the foundation for a powerful pricing strategy. This module seeks to provide the delegates with an understanding on how to gain transactional control of your pricing. Using real world-class companies as examples, the module covers areas as: Pricing Maturity Levels Discount Management and Sales Force Incentives How to Apply Analysis Methodologies to Uncover Hidden Profitability in Your Pricing Methodologies which can be implemented in Order to Drive Customer Behavior through pricing MODULE 2: PRICING ANALYTICS Pricing Analytics are essential in order for you to truly understand your pricing performance and profitability. This module seeks to provide the delegates with an understanding of how to apply pricing analytics to their business in order to uncover hidden profitability potential, using real world-class companies as examples and implementing methodologies and analysis like: Price Waterfall Scatter Plots Customer based Margin Analytics FACILITATED DISCUSSION 1: GST IN MALAYSIA How does it affect you and your customers? MODULE 3: VALUE BASED PRICING (PART I) What is true Value Based Pricing and what does it take to truly sell on value? This module seeks to provide the delegates with an understanding of what it takes to build the foundations for a Value Based Pricing strategy, using real world-class companies as examples and covering areas as: Foundations of Value Based Pricing Terminology and Background The Importance of Customer and Market Segmentation Identifying the True Value in Your Product or Service Offering Internally Through Value Mapping MODULE 3: VALUE BASED PRICING (PART II) Customer Perceived Value - How to Identify and Evaluate Customer Perceived Value, Using Tools such as: Conjoint Analysis Customer Value Analytics Customer Economic Value Modeling and Quantification Customer Value Elements Modeling Comparative Advantage Modeling Customer Economic Value Quantification MODULE 4: PRICING POWER What is true Pricing Power? This module seeks to provide delegates with an understanding of true Pricing Power, covering areas as: What is the Definition of Pricing Power and Why is it so Important? Modeling and Analyzing Your Own Pricing Power? Actions, Which Can Be Undertaken in Order to Improve Pricing Power? FACILITATED DISCUSSION 2: PRICING MATURITY IN MALAYSIA What steps have you taken to improve your company’s pricing maturity and why? MODULE 5: INSTITUTING A POWERFUL VALUE BASED PRICING STRATEGY What is a truly powerful Value Based Pricing strategy and how do you combine the elements from Module 1-4: Best Practice in Pricing Policies and Documentation Change Management Communication and Training Value Based Selling FACILITATED DISCUSSION 3: GEARING UP FOR THE FUTURE Where do you see the biggest challenges in pricing in Malaysia from now to 2020?
- 4. JESPER HANSSON is the founder and Managing Director of Core Pricing Pte. Ltd., the Managing Partner for SPMG Asia and the current President of Asia Pricing Professionals, the largest not-for-profit organization for pricing and revenue practitioners in the world. A strategic thinker and pragmatic pricing practitioner, Jesper has more than 23 years of experience in large-scale multinational corporations. He has expertise in value based pricing, finance and controlling, and implementation of innovative pricing strategies. A large part of his career has been directly linked to pricing projects in the Asia Pacific region. His areas of expertise include: finance & controlling, implementation of pricing software solutions, customer value mapping and quantification of customer economic value, change and price management projects across multiple functional areas, marketinsg and go to market strategies, value based pricing and implementation of advanced and innovative pricing strategies, Pricing and commercial excellence and bid management. His clients include organizations like Baxter, Pepsico, Schneider Electric, NatSteel, DHL, BlueScope Steel, Philips, Dell, American Express, National University of Singapore, Dusit Thani Hotel & Resorts, Volvo, Lufthansa, John Deere, Johnson & Johnson, Bayer, Parkway Healthcare, Straumann, BP, ABB, BASF, Emerson, Orica, Osram, Marina Bay Sands, Fonterra, Grundfos and many others. Jesper earned his Higher Commercial Examination from Viborg Business School, a BA in International Trade from Aarhus Business College, a Pre MBA in Strategic Management from Business Institute in Aalborg and is a Certified Pricing Professional with The Professional Pricing Society. “Jesper is a brilliant business professional with great knowledge in pricing and will a tremendous business acumen. He is both gifted in strategy building and in getting things done. He is reliable, approachable, and very responsive. I have known Jesper for a while now and he never stops surprising me in a good way. I highly recommend his skills and personality to any progressive company.” Stephan M. Liozu, Ph.D. Agent of Disruption Pricing Thought Leader - Value Coach NOTE FROM THE SPEAKER Dear Delegate (s), What is good pricing and revenue management and how do you go from having a good pricing strategy to a world-class pricing strategy? What is pricing power? What is value based pricing and how do you analyze and measure customer value and willingness to pay - and what does it really mean to sell on customer value and not on price. In this highly interactive workshop, we will explore numerous real life examples from multinational companies, who are setting new standards for world-class pricing and revenue management excellence. We will then learn how to apply these tools and techniques to our own companies. This workshop is targeted at anyone involved in strategic pricing decisions. It includes lecture, case studies, exercises and facilitated discussions on the latest trends in pricing and revenue management. After attending this workshop, people will be able to go back to their companies with a fresh perspective on how to think about value and pricing and heavily improve their company's top-line and bottom-line performance by increasing their Pricing Power. See you in Kuala Lumpur! Jesper How would a 1% increase in price affect your company’s bottom line? It is shocking how powerful small changes in price can have on the bottom line. McKinsey & Company study of the Global 1200 found that if companies increased prices by just 1%, and demand remained constant, on average operating profits would increase by 11%. Using a 1% increase in price, some companies would see even more growth in percentage of profit: Sears Holdings, 91%; McKesson, 61%; Kroger, 38%; Merck, 28%; Delta, 17%; Alcoa, 38%. PRICING is one of the most POWERFUL YET UNDERUTILIZED STRATEGIES AVAILABLE TO BUSINESSES