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Adapting Pricing for Emerging Markets

Adapting Pricing for Emerging Markets

Overview

Currency volatility, competitive pressures, and more price-sensitive customers are pressuring multinational companies' emerging-market pricing processes and strategies.

In this environment, companies cannot afford to make slow, ad hoc, and tactical decisions on pricing, as these could cost both market share and profitability. Instead, companies should improve their global pricing processes to make more efficient, locally informed decisions on prices that are driven by strategic objectives, rather than short-term concerns.

This report analyzes where companies’ pricing processes fall short in emerging markets and provides frameworks, tools, benchmarking data, and case studies on how to improve them.

The report also includes a series of case studies on tactics companies can use to improve the effectiveness of their pricing in an environment of high currency volatility.

What you will learn

  • What does it take to build an effective pricing strategy for emerging markets today
  • How can companies select the pricing tactics most suited to their strategy
  • Understand actionable case studies, management frameworks, and exclusive benchmarking data


Executive Summary3-
Section 1: Overview of Pricing in Emerging Markets
  Pricing is Becoming Exceptionally Complex
  Foreign Exchange (FX) Volatility Will Further Disrupt Pricing
  MNC Responses Have Been Ad Hoc9-
  Pricing Should be a Strategy, Not Tactic Set11-
  Three Steps to Ensure Effective Pricing
Section 2: Build an Effective Pricing Process for Emerging Markets
  Internal Pricing Processes Fall Short15-
  1. Build Flexibility into Pricing Process17-
  2. Resolve Centralized vs. Local Tensions19-
  3. Involve the Right People From the Start
  4. Align Incentives and Pricing Strategies
  Case Studies24-
Section 3: Develop a Tailored Pricing Strategy Process
  5-Step Process That Links Pricing Decisions to Business Strategy30-
Section 4: Select the Pricing Tactics Most Suited to Your Strategy
  Pricing Tactics Vary in Utility
  Select the Right Pricing Tactics
  Estimate Account Profitability43-
  Develop a Dynamic Pricing Scorecard47-
  Add Value to Preserve Price50-
  Leverage Product Positioning53-
  Deploy Your Channel for Pricing55-
  Structure Options-Based Contracts60-
  Improve Working Capital63-
  Share Your Pricing Model
  Equip Salespeople with Pricing Data
  Factor Invoices
  Complete Strategic Acquisition
Section 5: MNC Pricing in Emerging Markets Benchmarking Data
  FSG Pricing Survey: Overview
  MNC Expectations for 2016 are Optimistic
  FX Volatility Mitigation Tactics Vary
  Pricing is a Group Process in Most MNCs
  Inefficiencies are Widely Spread
  Pricing Effectiveness Varies75-
About Frontier Strategy Group

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