Page 0077

Page 76 FEBRUARY 2018 | RETAILERS FORUM MAGAZINE

forumworkshop

FORUM WORKSHOP

continued...

Let's position a brand - product on the grid and

discuss strategies related to the economic climate as well as the competition scenario.

DEMAND - PRICE STRATEGY GRID

Price - Demand High Med. Low

High 1 2 3

A

Med. 4 5 6

Low 7 8 9

In the above scenario, your brand is in position

A, one of the highest priced product - service

in a high demand marketplace. The big question

is: What direction is the market demand

moving? Let's assume demand is going to drop

dramatically with a major recession imminent

that will last an indefinite period of time. Then

demand would be going from high to low.

Now you need to go back to your key questions

for more answers. You need to ask yourself: Are

my competitors likely to enter into a price war

with huge discounts? Will anyone take the high

road and not discount? How

will

my customers'

expectations and

needs be affected

by this recession?

What will

relate to these

new needs with

respect to my

pricing and level

of service, etc.?

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