Are you thinking about changing your pricing strategy in the (post) coronavirus times?
At the beginning of this year, one of our clients, Pernod Ricard, reached out as they needed to define a pricing strategy for one of their brands. We conducted an online survey where we contacted 1500 shoppers in one of the EU countries. Satisfied with the results of the research, we provided some key guidelines for the brand’s pricing and promo strategy.
However, nobody could predict what would happen next. Back in February, when we launched the survey, people still didn’t worry about COVID-19. But in only a few weeks, the virus began to spread worldwide, and the global crisis escalated. As in every crisis, people fixated on primary needs, and they started hoarding things like dry food, tins, and toilet paper. Although this panicky behaviour eased out, the perception of our lives and the world around us changed drastically.
Expectantly, Pernod Ricard had doubts regarding the research we concluded before the crisis. Some of their questions were:
Against the shared opinion of many consultants – “don’t do strategic research during a crisis” – we decided to repeat the research beginning of May. This time, our objectives were to see whether the guidelines we wrote before were still viable and to detect changes in overall shopping behaviour.
The results surprised us, as we didn’t see big changes in price sensitivity before and during coronavirus. Like many, we assumed the crisis would significantly affect the consumers and how they see prices, but that wasn’t the case.
Our main takeaway?
We also came to other interesting conclusions:
These conclusions are based on our current insights. We will be running this research again in September this year to review the price and promo guidelines.
Want to find out how we can help you optimise the pricing strategy for your business, as we helped Pernod Ricard and many more?
Contact us at email@example.com!