Pricing Strategy in Practice

Go to Course: https://www.coursera.org/learn/uva-darden-bcg-pricing-strategy-practice

Introduction

### Course Review: Pricing Strategy in Practice **Course Overview** In today’s fast-paced business environment, understanding pricing strategy is crucial for success. "Pricing Strategy in Practice," offered by Coursera in collaboration with Darden’s Ron Wilcox and BCG’s Thomas Kohler, provides a comprehensive, project-centered approach to mastering the art of pricing. This course takes students through a real-world case study revolving around Philips’ introduction of an eco-friendly light bulb, equipping participants with the analytical tools necessary to recommend optimal pricing strategies amidst market disruptions. **Course Structure and Content** The course is meticulously structured over several weeks, with each module building upon foundational concepts to foster a deeper understanding of pricing dynamics. Here’s a detailed breakdown: 1. **Retail Market Dynamics**: The course kicks off with an introduction to the Philips case. Under the guidance of experienced instructors, students analyze the economics of the LED light bulb through a cost lens. This module lays the groundwork for understanding market dynamics, as well as insights from BCG pricing experts who share valuable experiences from various industries. 2. **Customer Value and Conjoint Analysis**: Moving into the second week, participants dive into customer value, learning how to employ conjoint analysis. This powerful tool facilitates the understanding of price sensitivity among consumers and businesses. Students learn to graph and analyze conjoint data to extract meaningful insights regarding customer preferences, helping them refine their pricing recommendations. 3. **Price Recommendation**: Armed with knowledge from previous weeks, participants pull everything together to formulate a pricing suggestion for Philips. They tackle critical questions around market segmentation—whether to serve B2B, B2C, or both markets—and how to optimally price the LED bulbs. This module emphasizes crafting a clear, persuasive rationale through a well-structured slide deck, preparing students for real-world presentations. 4. **Curveball**: The final week presents a twist, simulating real-life market challenges such as new competitors and regulations. Participants must adapt their strategies in response to evolving market conditions, reinforcing the importance of flexibility in pricing strategy. This hands-on experience culminates in a practical investigation of the LED bulb market in participants' local areas, encouraging actionable learning. **Key Takeaways** This course excels in bridging practical application with theoretical foundations. The use of a case study reinforces learning, while the integration of expert insights from BCG professionals enriches the experience. The interactive nature of the course encourages critical thinking and adaptability, paramount skills in today’s business landscape. A unique feature of this course is its focus on real-time market analysis, equipping participants with the ability to instantly react to market changes—a skill that is invaluable in the competitive world of pricing strategy. **Recommendation** "Pricing Strategy in Practice" is highly recommended for professionals looking to enhance their pricing strategy skills, whether you are a marketing manager, product manager, or entrepreneur. Beginners will find the course accessible due to its structured approach, while seasoned professionals will appreciate the depth of analysis and practical application. This course not only provides the theoretical framework necessary for understanding pricing strategy but also equips students with tangible skills that can be applied directly to their business challenges. The blend of theoretical lessons, real-world applications, and expert insights makes this course a must-enroll for anyone serious about mastering pricing strategies. Whether you aim to improve your company's bottom line or simply want to expand your business acumen, this course is a significant investment in your professional development. Enroll now on Coursera and take the next step towards becoming a pricing expert!

Syllabus

Retail Market Dynamics

Welcome to the course! We'll kick off the week with an overview of the project, which centers around Philips introduction of an eco-friendly light bulb. Once you've read the case, Thomas and Ron will guide you as you apply the cost lens to analyze the economics of the LED light bulb Philips has introduced to the market. After you've analyzed the economics of the case, Ron and Thomas will debrief to make sure you are on the right track. You will also hear from BCG pricing experts, who will share their lessons and tips gleaned from years of helping clients in multiple industries optimize their prices and improve the bottom line.

This week, we will dig deeper into customer value using conjoint analysis to determine the price sensitivity of consumers and businesses. Thomas and Ron will show you how to graph the conjoint data to easily compare these two markets--and you'll do additional analysis of the conjoint data to learn more about what consumers value. Using your analysis, you'll hone your pricing recommendation.

This week, you will pull everything together to make a pricing recommendation for Philips. You will recommend which markets they should serve (B2B, B2C, or both) and how they should price their LED bulbs. You'll learn how to lay out your thought process and rationale in a tightly edited slide deck that presents your recommendations in a compelling way.

This week, you will respond to new developments in the LED light bulb market: a new competitor and new regulations. Just like in real life, you'll need to adjust your strategy when the competitive landscape changes and new regulations emerge and reconsider the retail marketplace and reevaluate the B2B market. You'll also head out into your own "real world" and do some detective work about the LED bulb market in your area and relate those finding to the case. We'll finish the course with BCG pricing experts sharing their insights into what makes pricing such a rewarding field.