Pricing Solutions for Consumer Goods: Dynamic and data-driven promotions

Pricing Solutions provides consumer goods executives the analytics, automation, and expert insights they need to optimize pricing and promotions based on demand, margins, and .

Periscope® by McKinsey 1 Pricing Solutions helps consumer Why Pricing Solutions? goods companies set, manage, World-class technology Pricing Solutions embeds world-leading intellectual and optimize in real time property and McKinsey know-how in a single to maximize profitability. platform that executives use to gain transparency into pricing decisions and create lasting impact. Successful consumer goods companies constantly Our technology and services provide consumer adapt product prices in response to rapid changes goods companies the capabilities they need to in the market and frequent competitor adjustments. develop sophisticated that drive For companies offering large numbers of SKU’s consistent top line growth. and brands, however, can be a Unrivaled data and analytics challenge. Our proprietary algorithms are based on insights Pricing Solutions dynamically recommends pricing from the McKinsey pricing practice and the and margin optimization for each product in a experience of more than 550 pricing experts company’s portfolio. We use prescriptive analytics around the world. We incorporate syndicated and the most up-to-date sales, cost, and competitor data, competitor prices, and pricing rules data to optimize two areas of pricing strategy: into our rules engines to provide relevant and -setting effective recommendations. Our technology automatically monitors the web Long-term capability-building for competitive price changes and overall strategy Our experts work with pricing managers to develop changes within categories, recommending real-time the best practices and muscle memory necessary price moves that optimize each product’s margins. to react to current and future pricing challenges. Promotions By hosting in-person workshops and technology- Our online platform allows pricing managers to test based training sessions, we ensure your team multiple offers on small groups of real shoppers understands the methodology behind each strategy and monitor clearance promotions in real-time you implement. to automatically set new markdown prices for underperforming events. We use big data to uncover patterns of successful past promotions and improve future planning and execution.

Pricing Solutions for Consumer Goods by the numbers: 2.5% 1.5% 10-20% Sales lift Margin uplift Increase in trade spend effectiveness

Get started To learn more about our suite of pricing solutions for consumer goods, contact us at [email protected] or visit www.mckinsey.com/periscope

Periscope® by McKinsey 2