PRICING AND PROMOTION STRATEGY
Set Pricing with Confidence
Improve profit with an optimized pricing strategy built on consumer insights and data analytics.
Capitalize on Pricing Potential
We develop holistic pricing strategies that consistently result in double-digit improvement in profitability.
Take Calculated Risks
With decades of experience designing and executing pricing strategies, our team provides the expertise you need to take calculated risks and move forward with confidence.
Earn Quick Wins
Early analysis will identify quick wins for your business to start capitalizing on pricing impacts before the final pricing recommendation is delivered.
Optimize Your Value Proposition
The marketing of price is as important as the price itself. We spell out how to present, market, and sell the strategy across channels.
Addressing Common Concerns in Pricing
We develop holistic pricing strategies that consistently result in double-digit improvement in profitability.
"Are we charging too much? Too little? Do we even have a pricing strategy?"
"Are our discounts driving incremental revenue or diluting profits?"
"Are we displaying our value proposition to pull consumers into desirable spending?"
"We haven't raised prices or adjusted strategy in many years. How do we move forward with confidence?"
The Impact of Pricing
1% Improvement in Price Realization Can Equal 5-10% Improvement in Net Profit
Cutting costs to drive profit is not a good long term strategy. Dropping price or even holding on price to retain or capture more market share will more likely just erode profit. But pricing where consumers place value can significantly improve business results. Depending on a company's cost structure, just a 1% increase in price realization can often equate to a 5% to 10% improvement in net income. If designed and executed with the consumer's wants and needs in mind, pricing strategy can also help drive demand.
Our Approach to an Optimized Pricing and Promotion Strategy
Discovery
Our analysts examine historic data and speak with key stakeholders to understand past performance, current pricing structure, channel strategy, and recent price changes that have impacted the business.
Analysis
Our team works with the data to discover trends and opportunities. In addition, we assess your competitors (both direct and indirect), and understand their strategy.
Results
We use our expertise to build a custom pricing strategy, develop a pro forma for the expected incremental value, and deliver a detailed plan for execution.
Industries We Serve
Driving profitability across a wide range of industries through optimized pricing strategy.
Featured Case Studies
Universal Parks & Resorts
Driving Revenue Through Optimal Pricing and Promotions
Integrated Insight has contracted to provide consulting and research services to Universal Parks and Resorts over several years, including venues in Orlando, Hollywood, and Japan. Our primary focus included demand generation, strategic and promotional pricing, and channel management. Many discrete choice pricing studies have been completed at all three locations to inform pricing strategy, the first being just before the launch of The Wizarding World of Harry Potter. Universal was well positioned to achieve success through both stronger demand and higher rate, and Integrated Insight designed a new pricing strategy that would still encourage multi-day stays, but produce significantly stronger yields. Other projects have included pricing research in support of new hotel and water park development, food and beverage and merchandise. Ongoing advisement included consultation on promotional and discount offers, channel distribution, nets and commissions, hotel occupancy and rate assessments. Tracking research studies helped inform the pipeline of demand and behavioral factors of current guests.
Empire State Building Observatory
Determining Pricing Potential in a Competitive Market
The Empire State Building Observatory substantially improved the experience and retained Integrated Insight to understand strategic pricing opportunities. Recommendations were made for both regular and VIP tickets, sold through both direct and indirect channels. In addition, Integrated Insight conducted primary market research among both residents of the metro area and tourists to NYC to understand awareness, product knowledge, and intent to visit.
Disney's Magic Your Way Pricing Strategy
The Makers Behind "Magic Your Way," the Most Sweeping Change in Revenue Strategy in Walt Disney Company history
Faced with the challenge of making a week-long vacation at Walt Disney World more affordable and maintaining share in an increasingly competitive theme park market, the principals of Integrated Insight, Inc. designed, developed, and implemented Magic Your Way, the most sweeping change in revenue strategy in Walt Disney Company history. The holistic strategy pulled guests into optimal behavior with the ability to customize their vacation, leveraging the strategic application of non-core assets (such as airport to hotel transportation and food and beverage packages) to improve the guest experience and capture higher spend. With the launch of the new strategy, the cost of an all-inclusive seven night, eight day vacation with meals and transportation was reduced by 36%, enabling many young families to take the vacation they had only dreamed of previously. Dubbed "Disney's Brilliant Price Hike" by analysts, overwhelming consumer response drove a 20% increase in annual operating income in year one, with year after year revenue gains in high single digits.
National Restaurant Association
Leveraging Market Position to Improve Pricing and Yield
The National Restaurant Association (NRA) engaged Integrated Insight to holistically examine the association for revenue opportunity. Phases of work included pricing for the Chicago Trade show (both participants and exhibitors), training and certification through the ServSafe, Food Handler, and Food Safety courses, and NRA membership pricing. Recommended called for higher pricing, packaging and bundling of key products and services, and better articulation of the price-value proposition versus competitor products.
Live Nation
Improving Revenue with Pricing, Distribution, and Targeted Marketing
Live Nation produces live music concerts in both owned and operated venues, and represents artists across all music genres ranging from new artists to established superstars. Integrated Insight was engaged to help grow revenue per show through effective ticket pricing, broader strategic ticketing distribution, and more targeted promotional marketing. Through analysis of historic data and a robust discrete choice research study among thousands of concert fans, a holistic pricing strategy for several multi-city tours across four genres was developed. A dynamic optimization model was developed to enable Live Nation to extend the analysis further.
Universal Parks & Resorts
Driving revenue through optimal pricing and promotion strategy.
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Empire State Building
Growing market share in a competitive market with a data-driven pricing strategy.
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Disney's "Magic Your Way" Pricing Strategy
The founders of Integrated Insight established Walt Disney World's pricing strategy, called "Magic Your Way," the most sweeping change in pricing strategy in the company's history.
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Select Clients
Contact Us for a Pricing Strategy Project
Integrated Insight is a leading analytics consulting firm, harnessing the power of data to help for-profit and not-for-profit businesses of all sizes reach their full potential.
We are dedicated to helping clients tackle their specific pricing challenges and dramatically grow profitability through pricing strategy. Our consultants have extensive experience in B2B and B2C markets within a wide range of industries.
For more information about our services or to get in touch with one of our consultants directly please contact us.
