According to OECD (Organization for Economic Co-operation and Development), the global economy is predicted to have slow growth. Even though it was expected to expand by 3.0% in 2023, it’s then expected to slow down further to 2.7% in 2024.
As the globe is still experiencing pressure from price inflation caused by many economic factors, everyone anticipates even more economic and market flare-ups.
With price hikes expected to continue for years to come, businesses and countries are struggling to make long-term plans, uncertain of how the market will react, reflecting on brands reaching their revenue growth management goals.
Below are a few pricing tips for FMCGs to help them set their marketing plan for 2024 in order to cope with the dynamic global economy:
Pricing tips to avoid:
- Setting prices based on gut feeling: This method is unreliable and can lead to you overcharging or undercharging your customers, both of which can hurt your business.
- Cutting fixed or direct costs to offset inflation: This may reduce your costs in the short term, but it can also damage your brand quality and product offerings.
- Increasing investment in communication and trade to maximize volume shares: This strategy is not sustainable in the long term, in addition, it can lead to you sacrificing profitability for volume.
Pricing tips to implement:
- Use Data Analytics and Predictive Modeling: You can generate dozens of pricing scenarios and outcomes. Subsequently, this will help you make informed decisions about how much to increase prices without losing customers or market share.
- Embrace new market research methods: The market research industry has undergone various updates and innovations that can support pricing decisions that help navigate market volatility. Therefore, using pricing decision models, can help you price your products based on consumers’ perceived value about the brand compared to the competition.
Finally, it is time to explore new directions to help you navigate the uncertain economic landscape ahead to maximize your revenue growth, even in the face of political unrest and inflation before it’s too late and competition jumps in first.
One example is Smart Value™ RGM Platform, which empower managers to make data-driven decisions with agility and reduce risks. So, unlock now revenue growth through reaching productive meetings and data centralization.
To learn more about how we can help you optimize revenue growth, contact us for a free 15-minute consultation.
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