of a global brand in an asian...

1

Measuring Pricing Power

of a global brand in an Asian economy

2 2

Don Sexton Professor of Marketing

Columbia University,

USA

Ruchira Jain VP Consumer Strategy

& Insights

PepsiCo, India

Venu Gorti Executive Vice President

Cogitaas AVA,

Singapore

Dr. Kamal Sen CEO

Cogitaas AVA,

Singapore

AUTHORS

3 3

SO WHATS NEW?

Section 1

• Business Challenge & Category context

Section 2

• The Research & Analytics Solution

Section 3

• Learnings across APAC and PepsiCo

4 4

Hyperlink: The Proverbial Elephant

5 5

Hyperlink: Executives Speak

6 6

Business

KPIs

8 8

BRAND EQUITY

11 11

FRAGMENTED SNACKS CATEGORY

Very Small

Stores

Regional

Players

Large National

Players

13 13

Vs.

PROMOTIONS? EQUITY

14 14

Linkage

Holistic

Leverage

Validate

INSIGHTS CHALLENGE

15 15

MARKETING MIX

MODELLING

CONJOINT

ANALYSES

PRICE ELASTICITY

MODELS

PARTIAL ANSWERS

16 16

COGITAAS

PRICING OPTIMA

MCV MAXIMIZED CONSUMER

VALUE

CSF CONSUMER SURPLUS

FACTOR

17 17

INTERNAL

SALES DATA

BRAND IMAGERY

SCORES

MARKET DATA

PERCEIVED VALUE

18 18

Hyperlink: Consumer Surplus Factor

20 20

Example:

How Consumer Surplus Factor can guide correct decision making?

Brand A: A large profitable brand that has historically led price increase in

the category. You are facing a cost pressure and have to take another

round of price increase.

21 21

Hyperlink: Case Study: 2 Years Ago

22 22

Pricing Strategy: No pricing power. Should not increase price.

Marketing Strategy: Focus on attributes that drive demand and PV.

23 23

Hyperlink: Case Study: Last Year

24 24

Marketing Strategy: Continued focus on attributes that drive demand

and PV.

Pricing Strategy: No pricing power. Should not increase price.

25 25

Hyperlink: Case Study: This Years Decision

26 26

Marketing Strategy: Continued focus on attributes that drive demand

and PV.

Pricing Strategy: CSF is optimal. Should increase market share. Can

increase price with further increase in Perceived Value

27 27

RESULTS USED AS PLANNING TOOLS

dashboard for creating

different plan scenarios

for pricing

discussing and finding

agreement on an optimal

pricing scenario

28 28

FLAG SYSTEM

STRENGTHS CONCERNS

29 29

PORTFOLIO

PRICING

EQUITY TRANSALTES

TO

PRICING

POWER

REGIONAL STRENGTHS & THREATS

VARIANT & SKU

PRICING

CHANGING MARKET

DYNAMICS

SOME INSIGHTS FOR PEPSICO

30 30

Its great that we all feel confident about our pricing

decisions and their impact on business goals

NET IMPACT

35 35

• Must provide double the value 1

• Investing in equity pays 2

• Perceived Value has stickiness 3

• APAC willing to pay for aspiration & trust 4

• Incremental sales drivers may be different 5

LEARNINGS ACROSS APAC WORK

of a global brand in an asian...

Documents