Pricing trade-offs in the era of Covid

Marketing & Trade

Price and promo strategies were disrupted by the pandemic. Living in the third year of Covid-influenced life, consumers around the globe are keeping a tighter watch on their spend as they continue to feel the impact of supply chain challenges, employment disruptions, and spending constraints due to inflation pressures across many markets. Today’s consumers are more discerning in seeking products and services that give added value and stretch the budget.

More than ever, manufacturers should keep a closer look at how consumers have evolved into more price sensitive shoppers. Our recent NielsenIQ 2022 Consumer Outlook online survey shows that 74% of consumers globally have re-evaluated their priorities. At the same time price is becoming a deciding factor in how people shop: 1-in-4 consumers globally select the lowest priced product from their preferred brand choices, while 18% would wait till their preferred brands are on promotion to buy.

New shopping behaviour and price sensitivity have major implications for manufacturers as pricing is the most critical lever impacting commercial results. Maximizing profits depends on making the right pricing and promotion decisions in a timely manner as well as on analysing the needs and reactions of the market and consumers proactively.

Check out our latest infographic to learn more on how to use price and promotions in the right way to maintain consumer loyalty as well as drive profits and incremental revenue.