Footwear Icons Monetize Consumer Brand Strength With Value-Based Pricing – Case Study

Quantified impact to “size the prize” against other financial considerations

• Despite its premium brand image, Client had very low margins in the Retail channel, driven by generous wholesale pricing and channel economics split with Retail partners.

• Client’s pricing actions were insufficient to fully address cost hits from inflation, requiring further quantification of potential impact to financial targets
  
  Establish likely price elasticity & demand responses, including in portfolio migration to other purchase choices

• The relative price differentials of good-better-best style ladders were calibrated to optimize profitability of “downshifting” by consumers.

• The margins of error were thoroughly examined through modeling and sensitivity tables with a view towards understanding the confidence intervals around profit and revenue impacts.

Bring tools and frameworks to the best-performing Region A, that would be then available to standardize globally in future project phases

• The leadership team of Region A became strong advocates for pricing excellence, and the lessons learned were shared with the global CLT and Board members.

• Tools and frameworks were developed for Region A and set the stage for future global standardization.

Facilitate pricing strategy consensus between leadership team and private equity firm, as well as educate the leaders on both strategy & frameworks for execution

• Region A’s leadership, including the CEO, CFO, and CPO, became vocal advocates for pricing action, ensuring alignment with both leadership and the private equity firm.

• The disciplined approach to pricing, including MAP enforcement and strategic scarcity, facilitated consensus on pricing strategy across the leadership team.