Global pricing and governance: Harmonize in an increasingly transparent world
Capturing global consumer willingness-to-pay can be tricky enough in the first place given that brand equity, value drivers and cost structures vary by country. Furthermore, price setting processes are often localized which means that there can be inconsistencies in how the portfolio architecture is designed. Furthermore, pricing transparency in this digital age has given rise to unintended consequences of parallel trade and grey markets which can erode brand image and equity over time.
However, starting with clear objectives by market and a consumer-first price architecture can help global brands regain control. In our 2020 Consumer and Retail webinar series, Shikha Jain and Hubert Paul will share a point of view on how to build a global pricing strategy and governance structure to start the transformation process.
The webinar will address topics like:
- What are the inputs that should go into a market-level pricing (e.g. brand strength, competitive indices, purchasing power parity etc.)?
- How should you manage externalities like forex fluctuations and parallel trade/grey markets?
- What is the level of autonomy that individual regions and markets should have when it comes to pricing their SKUs?
Creating a structured approach to global price setting that is consistent across markets while at the same time taking into account local dynamics is no easy feat. From a governance standpoint, a global platform allows brands to be nimble as a constant feedback loop ensures that a global branding strategy is executed at a market level to capture maximum profit opportunities.