Industry
Company Profile
- $1bn annual revenue
- Multichannel retailer in consumer electronics, combining hypermarket stores with an online shop
- 20,000 SKUs in a wide range of categories
Situation and Objectives
- Develop a new pricing strategy that improves the gross margin without loosing market share
- Align pricing of online shop with prices in brick-and-mortar stores
- Define new processes and tools to implement the new pricing strategy
Approach
- Analyze current pricing strategy in detail to understand its strengths and weaknesses
- Clarify the objectives as well as the organizational and technical limitations of the new pricing strategy
- Design new pricing strategy by defining pricing roles and related pricing methods on a store, category and item level
- Apply new pricing strategy to a selection of pilot categories and define new prices for all of their items
- Test the new pricing strategy in a selection of stores representative for the whole country
- Fine-tune pricing strategy and plan roll-out to all stores, including implementation of the pricing tool and training of key stakeholders
Multi-channel Pricing Strategy to Improve Profit

Results
- New pricing strategy with pricing roles and related pricing methods on a store, category and item level, which in a test showed a positive impact on the gross margin without loosing revenue
- New prices for a selection of representative pilot categories
- Roll-out plan for the new pricing strategy in all categories, incl. implementation of new pricing tool
- Trained key stakeholders who know how to apply the pricing tool and the new pricing strategy
Impact
- Gross profit increase of 7%
- Market share development in line with expectations
- Shift in mindset that not all prices of exclusively online competitors have to be matched