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Strategic Movements August 2018

August 2018 Corporate, Selling

The Value of Human Judgement

“Those who are insistent that human beings cannot cope with determining what to do unless all values are somehow reduces to no more than one, are evidently comfortable with counting (‘is it more or less?’), but not with judgment (‘is this more important than the other?’).  Amartya Sen, The Idea of Justice.

Price Wars: Signal Corporate Weakness at Unilever

Unilever PLC reports lower profit for the first half of 2018 due to discounts and price increase struggles.  Secular Trends: (1) Brands like Hellmann’s Mayonnaise, Dove Soap, and Magnum Ice Cream don’t have the same customer attraction that they did a decade ago.  (2) The trend from branded goods and wide-variety stores to store brands/generics and hard discounters like Aldi continues.  (3) Online shopping continues to make inroads into the pantry, cupboards, and water closets.  Action item: Create new question-mark brands that are on trend while continuing to milk the cows.  Good luck Unilever.

MoviePass Makes Changes

MoviePass is raising its price from $9.95 to $14.95. Right direction but not enough. Lost $98 Million on $48 million revenue. WOW Would need to triple prices to cover losses.  Insolvency still looms. #pricingstrategy

Inflation is Here

Nielsen reported household and personal car product prices increased an annually adjusted 2.2% the June/July time frame – but expect more.  Colgate-Palmolive promised higher prices in the second half of 2018.  P&G is moving to raise prices on Pampers by 4% and Bounty, Charmin, and Puffs by 5% (all are paper products).



About the author

Tim J. Smith, PhD is the Managing Principal of Wiglaf Pricing, and an Adjunct Professor at DePaul University of Marketing and Economics. His most recent book is Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures.

Tim J. Smith, PhD
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