Mix Management for Growth
Proactively Drive Profitability
How you structure your portfolio offerings and prices affects your revenue and profitability. As your business grows and you expand your products and services, the chance of negative interactions between your offerings increases.
Through a proactive mix management approach, you can minimize pricing conflicts and unintended consequences while meeting your customers’ needs and capturing market share.
Alexander Group helps companies structure their portfolio offerings to drive greater revenue and profitability.
Product Mix Management for Maximum Profits
Proactive mix management is crucial to driving long-term, sustainable growth. As your portfolio grows, mix management becomes critical to minimize cannibalization across your products and services.
Adjusting your pricing strategy or reshaping your product and service offerings to capture increased market share is critical, but challenges include:
- Adjusting price gaps: Assessing and optimizing price gaps between tiers or groups of offerings is essential. For example, your company offers multiple tiers of products or services at different price points, but you must strategically match the value of the offering at each tier. Analyzing price gaps requires understanding the market, competitive practices and differentiated value provided. Price gaps should match the value of the offerings and ultimately drive customer satisfaction.
- Addressing portfolio whitespace: Build offerings based on the whitespace in your portfolio. Correct pricing allows you to go after untapped opportunities and increase market share and profitability.
- Managing offering by customer segment: Needs vary by customer segment, including size and growth potential. Selling offerings tailored to each customer segment will help to maximize revenue, increase average deal size, enhance margins and drive customer retention.
You will benefit by creating the optimal mix of offerings based on customer demand, sales data, and market and customer insights. In addition, you will identify areas to (1) adjust your pricing to match the value of your products, potentially increasing prices where your offerings demand a premium, and (2) group your products and services to optimize your pricing and fulfill customer needs.
Alexander Group can help you implement a strategic and proactive approach to mix management that generates customer value and achieves business objectives.
Pricing Strategy & Execution in Times of Change
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