Pricing and promotion in 2021: Six steps to success in Q4

Perfect your pricing and strong peak week sales will follow

Plan now to take on the fiercest competition yet

Sales in the TCG sector are booming, and market factors have been driving prices.

As we see no signs of these rises ending, getting your pricing right in 2021’s peak weeks will be the difference between sales success and failure. We expect this Q4 to be one of the fiercest competitions for marketers, product managers and sales executives as they work to perfect relevant, appealing promotions that will drive sales. As Black Friday and other sales initiatives grow in importance globally, it is business-critical to plan, monitor and adjust your pricing if you are to win in this battlefield.

Armed with data from GfK’s Market Intelligence: Sales Tracking and Market Intelligence: Supply Chain you can see what is selling right across the retail landscape, and for what price, which gives you the flexibility to adapt and respond to changing market and consumer trends. In this paper we have used data from these sources.

Six steps to getting your pricing strategy right

STEP 1: Perfect pricing in the coronavirus era
The pandemic has disrupted previously familiar pricing trends and there have been price rises in all categories and in all price bands, from mass market to premium. To get your pricing strategy right, make sure you are tracking changes prices in your categories and among your competitive set week-to-week.

STEP 2: Choose less aggressive promotions
When supply is limited and demand remains high, retailers do not need to get into a promotion-led bidding war to attract customers. By understanding demand trends and consumer behavior, you will be able to create enough appealing and relevant offers to fulfil your customers’ appetite for a bargain, without discounting unnecessarily.

STEP 3: Securing supply supersedes low price aspirations
Now is the time to plan how to mitigate for supply shortages so you can keep your Q4 customers satisfied. By closely monitoring how supply and demand develops for your products and how readily your own and competitor products are available online and in-store, you can stay one step ahead of the pressures on the supply chain.

STEP 4: Know when consumers will pay more for premium products
Sales made during the Q4 2020 lockdowns showed us that consumers will pay more for problem-solving products. It is key you understand these shopping trends and know the latest consumer preferences when planning your pricing and promotions.

STEP 5: Adapt to changed online and offline pricing dynamics
The growth in online sales during lockdowns drove a convergence of pricing levels with offline, and this is a definite plus for consumers. Manufacturers and retailers will want to evaluate prices on a product-by-product basis balance prices across all channels.

STEP 6: Respond fast using the latest market intelligence
Being ready to maximize 2021’s peak seasons is an ongoing process. By understanding what consumers will pay for a product and how much the competition is selling it for, you can evaluate whether your pricing is appropriate for the current market conditions and, if not, adapt fast.