What price is right?

Price_actisku

The pricing war began a long time ago.

Today, using promos such as “buy two get one free”, “3 for 2”, “2 for the price of one” and all the other imaginable schemes, distributors are obsessed with gaining market share from their neighbour by offering lower prices. From sale to price reduction, they have only one desire: to protect their margins by keeping their own clients at least, and if possible winning some over from their competitors. A veritable balancing act that is also subject to the law of the marketplace.

On the other side of the fence, the industrialist is scratching his head: “How can I accurately evaluate the price at which I should sell this new product?” All the more so as he often has several brands and dozens of references in a single aisle and can’t let his “new” product be shot down by another one. It must also be correctly positioned among the ubiquitous “private label” products, and the competing products of other brands or “signature” products. He must justify his price in relation to the ”best price” products that are increasingly capturing consumer interest.

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The birth of virtual Test Shoppers

Actisku_virtual

Once upon a time...

A recurring issue in retail distribution and industry is how to evaluate in-store marketing for large-scale commercial operations and be certain that it will have the desired impact on sales. It is just such a typical, yet crucial question facing marketing and business departments that launched a project called “ActiSKU” 4 years ago. “SKU” is mass distribution jargon for a “product type”. In 2006, a manager with Carlsberg, a brewer present in more than thirty countries, met with ACTIPLAY, a company specialised in the production of 2D and 3D, real-time advergames… that is, video games and advertising sites!

What was the link between these two? Only that the brewer had an idea in mind, and specific needs, and ACTIPLAY mastered 3D technology. Nothing more was needed to launch an effective project between ambitious, visionary partners.

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A new star: “Pop-up Retail”

In mid-March 2009, Publicis Net sent a newsletter about “Pop-up Stores” to its subscribers (of which I am one). You’re probably wondering what this new marketing concept is all about! The idea is simple and inspired by flash-based sales on the internet.

From the “pop-up stand” to the “pop-up store”

Perhaps you are more familiar with the “pop-up stand” that has clearly been very successful in Germany and England according to Publicis Net. This is a new generation of temporary stands made of recycled cardboard and other basic materials, with but one aim: to sell a completely new product or to promote a new brand. Stands are easy to install (they only take a few minutes) and can be disassembled just as easily, which makes them very useful.

Inspired by these stands, “pop-up” stores are designed to sell “one or more brands within very specific time and space constraints, and are deployed in the heart of large cities in order to generate “buzz” and to create a new, unique image to a brand name.” These “pop-up” stores seem to be very effective if one were to believe what is written at www.trendwatching.com, although it does not go into detail to justify them. After all, if new products can come and go as quickly as they seem to, why not the same for stores?

Beyond plain old standard shops, local stores, and other “last minute” boutiques, here are short-lived, temporary stores designed to create a “buzz” effect that are finally in tune with our times. A new sort of “passing” or “zapping” store that entices young people (and older people) with a quick marketing and commercial offer (between 15 days and 2 months), effectively taking them by surprise with an unusual way of doing business.

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