Consumer behavior and willingness to pay are shifting more frequently, and often more dramatically, than ever before. Meanwhile, increasing competition—from e-commerce, hard discounters, and small, growing brands—and pressure from retailers are squeezing margins for CPG companies. We deliver bottom-line impact, quickly, through net revenue management (NRM): actions applied along key pricing levers, such as promotion management, pack price architecture, channel mix, brand portfolio pricing, and trade terms optimization. We leverage artificial intelligence (AI) and data science to create sophisticated pricing models and solutions, including a promotional-effectiveness tool that forecasts the impact of prospective promotions. And we develop the processes, governance, technology, and organization that make NRM stick, becoming integrated in, and integral to, day-to-day operations.
Few industries have as much transaction data as retail, and we show retailers how to unleash its full power. That means identifying and prioritizing use cases that deliver a high impact quickly and ensuring that the right data is available to fuel them. We take a holistic approach, focusing on the five key pricing levers that can drive—and sustain—growth in retail: shelf price, promotions, personalized offers, in-season pricing, and markdowns (which, for nonfood retail, generate immediate cash by calibrating where, and when, to adjust margins to move excess inventory). By leveraging AI, advanced analytics, and proprietary tools, such as our promo effectiveness tool, we help companies model different scenarios, predict customer response, and automatically adjust pricing. Crucially, we also help clients develop the agile processes, test-and-learn culture, and change management that put retail pricing strategies into action fast—so they can create value and competitive advantage right away.
As travel operators across sectors—including airlines, hotels, cruise lines, passenger railways, and tour operators—prepare for a rebound following the COVID-19 crisis, they must manage unprecedented volatility in demand. Our revenue management programs and advanced demand-forecasting capabilities enable companies to quickly identify shifts and deliver more value—to their customers and themselves—via personalized offers, bundling, competitive pricing, and other key pricing levers. Through our Center for Revenue Management in Travel, our experts help clients leverage new data sources, advances in machine learning, and an array of BCG tools to optimize pricing and promotions, more profitably manage inventory, and identify new opportunities to increase revenue. We also help them combine agile processes and business judgment to react quickly to new shifts and insights. So even in uncertain times, pricing in travel, tourism, and airlines can spark growth—and resilience.
Accelerated trends in the TMT industries—such as remote work and the rise of digital channels—have created new spikes, drops, and uncertainties in demand. At the same time, subscription pricing is gaining traction in a broad array of businesses, including video streaming and cloud-based infrastructure. We help companies reimagine pricing in technology, media, and telecom and build a foundation for profitable growth. We transform pricing models as well as skills, processes, and KPIs, so clients can detect changes in demand, adjust pricing and promotions accordingly, and determine what works—quickly and in a more granular way, matching the right price with the right product by geography, segment, or even individual customer.
In Europe and the US, new-vehicle sales are not expected to rebound to prepandemic levels until 2023. This has put pressure on automotive pricing strategies—and increased the temptation to cut prices. Yet while discounts can boost sales volume, they also destroy margins. We help car companies develop a dynamic, margin-preserving pricing strategy: one that lets them control discounts while rapidly identifying—and adapting to—changes in consumer demand and behavior. It’s a data-driven approach that stresses personalization, matching the right incentive with the right customer. And it’s agile and responsive, enabling automakers to apply the levers that resonate in today’s market, such as innovative financing solutions and online direct-to-consumer pricing. It makes profitable growth a priority—and a reality—even in times of crisis.