Packaging and pricing a Global Fashion retailers digital proposition
Organisations around the world are adding digital propositions to their business ecosystems. As a result of the intangible nature of digital solutions, pricing and valuing them appropriately is critical, but often challenging.
Riverflex has recently helped a client navigate this process, guiding them with a go-to-market strategy – mainly focusing on packaging and pricing – which has (in the client’s words) empowered them with the tools to hit the ground running and evolve as a business in the future.
Now, our client, an individual legal entity was born within the innovation centre of a major global fashion and lifestyle group, operating in over 40 countries. The successful internal adoption of an innovative selling solution developed in-house led to the decision of externally commercializing it to other fashion brands who could benefit from the multidisciplinary advantages, directly resulting from its implementation.
In 12 weeks we developed a comprehensive roadmap to success, complete with packaging and pricing framework, as well as deeper understanding of the clients’ competitor environment.
Despite the parent company’s considerable experience in the fashion industry, this would be the group’s first venture away from fashion retail and into software solutions sales. This divergence meant the group would now shift into not only a new product but also a new business model and industry. As a result, the client was seeking support and expertise in how to sharpen, package and price this new proposition.
We worked closely with our client over a 12-week period to conduct internal interviews, external customer research, and bring market examples to solve this problem.
In the process of developing a strong pricing and packaging model and a comprehensive go-to-market strategy, the Riverflex team focused its approach to 5 main stages.
In stage 1, we focused on understanding market trends, opportunity size, and competitive landscape, through the assessment of market dynamics and in-depth evaluation of competitor features and threat levels. The results were a set of key insights into competitive positioning.
Stage 2 dived into the digital selling solution of potential target customers and was centered around market sizing exercises as well as the development of a segmentation and prioritization framework to drive the client’s effectiveness in business development.
Stage 3 consisted of leveraging target customer insights previously collected, particularly the mapping of customer perceptions of value, based on the importance and performance of value drivers. The input was used to strengthen the value proposition in a combined effort between the Riverflex team and the client.
In Stage 4, which corresponded to the core step of the project, we helped develop a modular packaging structure: simplified and tested with key stakeholders. Additionally, our pricing experts built a robust pricing logic and pricing mechanism for the client’s innovative solution: one that is future-proof and scalable going forward. Often qualified as an intangible field, pricing at Riverflex follows the most recent and sophisticated frameworks. This leads to explainable and defensible packaging and pricing structures, supported by thorough analysis.
For this project, Riverflex looked into pricing from three different angles – Costing, Competition and Value. As a result, 7 distinct perspectives were evaluated in the price setting approach.
Lastly, in stage 5 the team developed a set of go-to-market tools to prepare and support sales for customer conversion, designed to create bespoke business cases for each customer. Next to that, the project deliverables included an analytical model to evaluate the financial scenarios associated with distinct business development strategies, such as focusing on volume increase or new client acquisition.
SNAPSHOT ON IMPACT MADE SO FAR:
The development of this comprehensive roadmap to success covered approximately 3 months, with the following results:
- The development of the packaging and pricing model drove readiness to market, allowing the client to approach its first prospect clients with the frameworks to convert them.
- The project played a critical role in renewing the parent-group leadership team’s confidence in the success of the commercialization of digital selling solutions.
- The project drove key internal decisions on cost allocation and business development strategy.
- It helped prioritize key prospect clients and to focus on customer acquisition efforts.
Note: Currently the client is preparing to onboard its first customers and has highlighted the involvement of the Riverflex team as one of the key factors to achieve this milestone.