14.10.11

Pricing pressures is one of the main concerns for EU companies!



In today’s global economy, organizations are facing unprecedented pricing pressures as they deal with volatility in the commodities markets, currency fluctuations and unyielding international competition. To help mitigate the challenges, a number of world-class companies are turning to pricing software recommended by organizations from McKinsey, to Gartner and KPMG. In fact, both McKinsey and Gartner indicate that raising prices by 1-2% reaps margin increases up to nine percent.

A recent survey by audit, tax and advisory services firm KPMG reflects these findings. In its annual survey of manufacturing executives from global companies, almost 80 percent of respondents indicate they are cautiously optimistic about prospects for growth in the next 12 to 24 months. Almost half of the survey participants believe that price volatility in raw materials and inputs remains the biggest challenge, followed by increased competition, pricing pressure and uncertain demand. EU companies in the survey noted that pricing and competition were at the forefront of their concerns.

To better manage volatility, KPMG respondents indicate they are reshaping their pricing models, with pricing identified as one of the key strategies.

“With recent strike action linked to demands for salary increases above inflation, increases in the price of electricity and other infrastructure, tolls and the slowdown in manufacturing output, this has put severe pressure on company’s margins,” said Gavin Maile, KPMG’s Africa Head of Diversified Industries. “Pricing is a powerful and proven strategy for improving top-line growth and profitability, yet few organizations know how to do pricing well.”

“As organizations navigate the challenges of raw materials and currency volatility, pricing remains at the forefront for many companies as they evaluate new opportunities to increase margins, market share and business agility,” said PROS Europe General Manager Wagner Williams. “The ePP’s Manufacturing PricingFuel Day will provide organizations with a fresh perspective on the power of prescriptive pricing with success stories that uncover its strategic value.”

The European Pricing Platform (ePP) will host its Manufacturing PricingFuel day on Oct. 27 at the Sheraton Munchen Airport Hotel. This event will illuminate how innovative manufacturers can integrate pricing and product strategies to achieve exceptional growth and profitability in this changing environment. An unparalleled group of speakers from some of Europe’s most prestigious organizations will participate: Merck, Novozymes, Schindler Deutschland GmbH, Armacell European Sales GmbH, Spenncon AS, PROS Pricing and Deloitte.

Practical information
Venue : SHERATON M√úNCHEN AIRPORT HOTEL
Date : 27 October 2011, 9.00h. - 17.30h.
Language : English, GermanFurther information or registration: Britt Dejager:  +32 (0) 51 320 372 
Rate : € 595,00 for full day attendance (inclusive 6-month free participation to the Pricing Platform), second person can register for € 495,00. Bulk rates for groups are also available.

5.10.11

Pricing of the Apple iPhone 4S


Apple iPhone 4S pricing designed to widen its appeal

Apple iPhone 4S pricing designed to widen its appeal

Apple concentrates on price rather than innovation to widen customer base; Samsung and HTC premium phones likely gain advantage, but lower prices put pressure on Nokia and RIM, say analysts



Apple’s strategy with the newly unveiled iPhone 4S is all about selling more phones. Rather than putting an innovative but more expensive device in the hands of a smaller audience, it has opted to target the mid-tier consumer and widen its customer base.
The move is being seen as Apple’s attempt to grow its market share in the face of the Android onslaught spearheaded by Samsung, HTC and others.
Apple’s is ranging the iPhone 3GS free on a two-year contract, while the iPhone 4 model will be cut to just the 8GG version, priced at $99. The iPhone 4S 16GB will cost $199, the 32GB $299 and the 64Gb will cost $399.
Francisco Jeronimo, research manager, European mobile devices at analyst IDC, said: ‘Despite the upgrades and the new iPhone 4S released, the announcement is all about price positioning. The new prices announced to the new iPhone 4S and previous iPhone versions allow Apple to compete in the price segments where Android is fiercely growing, the mid-range.
‘Apple will attract first-time smartphone users and users from mid-price Symbian devices looking for an upgrade, but will it attract current iPhone users to replace their current iPhones? Definitely not!
Jeronimo believes this will provide an opportunity for Samsung and HTC’s premium handsets to increase their market share as iPhone 4 users look for an alternative.
‘The Samsung Galaxy S II has been a major hit around the world and a serious competitor to the iPhone. HTC has also been increasing market share in the high-end segment,’ said Jeronimo. ‘Without a significant hardware differentiation there's no strong incentive for a massive replacement, as users can just upgrade their iPhone 4's with the new iOS 5.’
Jeronimo pointed out that Apple will be ‘better positioned to compete in the mid-range segments and increase its presence in the emerging markets, where price is still a major factor on the purchasing decision’.
He went on to say that Nokia and Research in Motion should be the most threatened phone makers. ‘If price was an inhibitor for consumers to move from their Symbian or BlackBerry based devices to the iPhone, now they have the change. Today Apple entered the mass market game, hopefully not leaving the innovation and coolness to their competitors.’
Editor: James Atkinson 

Source: http://www.mobiletoday.co.uk/News