The Wiglaf Journal

Economic Price Optimization with Historical Sales Data

2013-05-02T10:51:15Z

When are studies of elasticity useful for pricing? When is it the wrong approach? What does economic price optimization really mean? What models are needed to get it right? What if you don’t have historical sales data, then what? If economic price optimization is not right for your business, then what should you do? Tune [...]

“Selling a product at a loss for market share is not a good business decision.” Jeff Fettig, Chief Executive, Whirlpool

2013-05-02T10:51:06Z

Costs and market share are easily measured. What about value? Creative Destruction Continues to Avoid Itself Businesses fail, businesses succeed. Should you flippantly accept this reality or actively participate in creating the future in which you can thrive? If you want to avoid risk, you may be able to shift it to someone else at [...]

Procter & Gamble Trumps Church & Dwight: An Example of the Customer Orientation Overtaking a Medieval Business Strategy

2013-05-02T10:50:59Z

CEOs Robert McDonald of P&G and James Craigie of Church & Dwight are facing off in the laundry soap business, and one of them is slinging mud. Recent executive comments and division performance reports highlight that the battle in the soap aisle isn’t just about soap, it’s about the fundamental purpose of businesses in competitive markets.

J.C. Penney’s Demise Recalls Other Major Modern Retail Failures

2013-05-02T10:50:51Z

Ron Johnson’s flawed strategy and his subsequent ouster as CEO of J.C. Penney recalls other major retail failures due to fatal marketing, strategy, and operational mistakes. Consider E.J. Korvette, F.W. Woolworth, or W.T. Grant.

Is Amazon No Longer a Low-Price Ecommerce Leader?

2013-05-02T10:50:43Z

There is a long-standing perception that dates back to the earliest days of the Internet that prices are always cheaper on the web at places like Amazon.com (AMZN). Today though, this may be a myth.

Economic Price Optimization through A/B Tests: The Limited Applicability, Part 4 in our Series

2013-05-02T15:42:39Z

Which is a better price: $15.99 or $16.49? To answer this question, we have A/B testing and price optimization, but this approach doesn’t work all the time.

Optimizing Prices for International Markets

2013-04-01T22:17:53Z

Pricing products for the global market creates a unique set of challenges. Trade barriers, conflicting regulations, and currency fluctuations alone cause enough headaches. Then there are transfer pricing and accounting challenges. And on top of it all, you have to deal with profit destroying parallel imports. What should the pricing executive do? Tune in as [...]

Game Theory: A Practitioners Approach

2013-04-01T22:18:09Z

Designing game theoretical models to describe competitive market environments is the primary focus of this workshop. Understanding how interdependent market interactions define strategic behavior and affect market health will be of utmost importance. In-workshop pricing experiments among participants will support concepts and demonstrate the impact of interconnected decision making. Case study applications highlighting firms that [...]

Why J.C. Penney’s New Strategy Won’t Work

2013-04-01T21:16:57Z

A few months ago I reported on a visit to J.C. Penney and commented on my disappointment with the look and feel of the store. What I saw was CEO Ron Johnson’s new strategy. The basis of this strategy is a return to the roots of the company through its “Fair and Square Every Day” philosophy. The problem with this strategy is that it is, in the words of Wharton Professor George S. Day, an “inside-out” strategy instead of an “outside-in” approach.

J.C. Penney – Love the Vision But You Chose the Rocky Path

2013-04-02T21:28:41Z

JC Penney’s CEO Ron Johnson has had a tough go at it. Stock valuation is down roughly 40% since the time Johnson took over. Customer sales are down 20% from last year. Some are calling for his resignation. But before we chant “off with his head” with the Twitterati, let’s see if we can’t help him find a way out of his quandary.