Kantar helps brands find their sweet spot for pricing

Kantar has introduced a new pricing sensitivity module to help brands identify the price points for new products which will create the most sales and yield the most return.

According to the marketing data and analytics company, 34% of brands globally are in positions where their brand equity does not support their current price, making them vulnerable to becoming victims of an increasingly inflationary marketplace when releasing new products.

The ongoing cost of living crisis is further jeopardising the viability of product launches with 53% of people worldwide requiring help to meet their monthly outgoings, per Kantar’s Global Issues Barometer from Q4 of 2022.

Will Galgey, Executive Managing Director, Kantar Marketplace said: “Any review of pricing strategies in uncertain times should be carefully approached.

“Ultimately, cautious spending does not remove the opportunity to sell at a premium price. But it does mean that brands must continue working hard to justify their price points. Now more than ever is when automated research comes into play, delivering fast and accurate insights at a fraction of the usual time and cost.”

The module operates within Concept Evaluate, one of Kantar Marketplace’s most demanded solutions, and makes it possible for brands to determine appropriate price ranges and price thresholds and how they vary by consumer targets ahead of releasing new products.

This gives marketers the ability to protect and maximise the value of their brand equity, making them better equipped to successfully negotiate the uncertainty and volatility of the current financial climate.

Part of the company’s suite of Innovation and Product Development solutions, Concept Evaluate claims to allow brands to identify and optimise new product and service concepts with double the accuracy of traditional approaches while assessing pricing sensitivity.

The module reflects an innovative approach to connecting a core aspect of marketing - pricing - with other concepts like brand equity and identifying target consumer markets.