how to do the pricing strategy for specific category?

Question

Accepted Answer

To develop a pricing strategy for a specific category, consider market research, competitor analysis, cost analysis, and customer segmentation.

Conduct market research to understand customer demand and price sensitivity.
Analyze competitors' pricing strategies to identify opportunities and differentiate.
Perform cost analysis to determine the minimum price that covers expenses and ensures profitability.
Segment customers based on their willingness to pay and value perception.
Consider pricing tactics such as penetration pricing, skimming, or value-based pricing.
Regularly review and adjust pricing strategy based on market dynamics and customer feedback.

Popular interview questions of Category Manager