Leveraging the Zone of Possible Agreement ZOPA to Make Pricing Decisions
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Case Study: How Levi’s Redesigned the Logo to Reinvent Brand Identity Case Study: How Macy’s Used Social Media to Reinvent Their Brand In conclusion: In my last case study I mentioned that Levi’s Redesigned their Logo, Macy’s used social media, and now you, as an industry expert, can learn how to do it. Let’s start with Levi’s. They have always been known as one of the most iconic fashion brands, and one of the top br
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We were having a product launch for our newly-introduced line of affordable clothing line. We were eager to showcase the best quality in the market. I had been leading a team of designers who would help us build the look-and-feel. Our aim was to create a look and feel which will attract customers, while at the same time the quality is commensurate with the price range. We started conducting a market research that would help us understand the customer preferences, their purchasing behavior and the target audience. The research showed that
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It’s no secret that pricing is a hot topic in today’s retail industry. For some, pricing is an exercise in pure math and data analysis. While some use the principles of costing and competitive analysis to develop pricing strategies, others turn to more artistic and creative pricing strategies. ZOPA is a great example of an inventive and well-thought out pricing strategy. ZOPA uses a zone of possible agreement (ZOPA) approach to pricing. Here’s how they do it.
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We know that businesses are using price discrimination to win market share. There are no free lunches in this world, however, as every industry is facing similar challenges. In the past few years, some companies have started adopting a new approach to price discrimination, which is the Zone of Possible Agreement (ZOPA). see ZOPA is a concept designed to find a middle ground between the cost-driven price discrimination that prevails and the profit-driven pricing based on perceived values of consumers. ZOP
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Innovation and entrepreneurship are driving economic growth and making the world a more innovative place. In the past, product innovation was limited to specific technological advancements, making innovative solutions that only addressed specific problems. However, the advent of the Internet and its ensuing digital revolution has broadened the scope of innovation, leading to a more expansive innovation spectrum that has led to an unprecedented explosion of creativity, invention, and entrepreneurship. The innovation ecosystem is one of the most significant
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“You have a good company, and that makes a difference. You have a market of 5,000 companies in our industry, and that makes a difference. You have a good management team, and that makes a difference. Your product, I’ve used it, and it’s good. And you’ve made a difference. That’s not so great. I recently visited one of your companies for the first time. They are very good, and I was impressed. But the price is far too high. In fact, it’s
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I was the lead for the team responsible for the pricing strategy for a new product launch. The product was a highly competitive product and I had the responsibility to ensure that the product price was aligned with the price point of the competitors. My colleague and I, Mark and Peter, were the most junior members of the team, so we had very little experience in the field of pricing strategy. However, we had an extensive knowledge of pricing strategy and the competitive landscape, both in our locality and across the globe. First, we identified the product’