PRICE
This term refers to the base cost of a product before trade or any discounts.
What is the list price?
This is what the acronym "PPA" stands for.
What is price pack architecture?
This is a payment made to retailers to support promotions.
What is the trade?
This term refers to the difference in price between a product and its competition.
What is the price gap?
This could be an objective of launching a small pack size, such as 8oz mayo.
What is an entry price point (opening price point)?
Or
How to drive trial or volume (units)?
This is what the acronym "LNUC" stands for.
What is the lowest net unit cost?
This metric reflects how competitive WMT price is vs Rest of Market.
What is value to market (VTM)?
This term refers to how the price per pound should decrease as pack sizes increase.
What is the value curve?
The process that helps RGM evaluate retailer opportunities that require more trade than provided through their annual operating plan (AOP) rate.
What is an over-budget request (OBR)?
Name 3 ways in which you can expand price index vs competition.
What are increase base, increase promo, reduce DoD, reduce freq, etc?
This concept measures the responsiveness of the volume for one product in response to the change in price of competing product.
What is cross elasticity?
This approach can increase price per pound without raising the price, reducing promotions, or rightsizing.
What is improving mix?
The area on a shelf or display that is often used to highlight promotional items.
What is an end cap (dump bin, shipper)?
Name three elements that are critical to defining a portfolio’s PPA strategy.
What are size, channel, price points, brand, etc?
A practice that sets prices in relation to perceived value to the consumer, rather than based on cost or competition.
What is value-based pricing?
This research analysis/method helps guide pricing and product development decisions by helping to determine how consumers value different features and price points of our portfolio vs. competing products.
What is conjoint analysis?
This key performance indicator compares incremental sales to promotional costs while also considering variables such as cannibalization, stock piling and retailer switching.
What is net return on investment (ROI)?
Name two ways of how you could move the Tier 4 event to Tier 1.
What is increase lift, decrease trade spend, get quality merch, change promo tactics?