Pricing Power Playbook for FMCG Brands

TL;DR

Pricing in FMCG works when architecture, promo logic, and retailer execution are managed as one system.

Key Takeaways

• Segment demand by shopper mission and channel.
• Separate base price actions from promo mechanics.
• Treat trade investment as a portfolio with clear ROI thresholds.

Definitions

• Price Pack Architecture (PPA): the relationship between pack sizes, price points, and margin ladders.
• Net Realized Price: list price minus discounts, rebates, and trade spend.

Checklist/Framework

1. Build elasticity bands by brand, pack, and channel.
2. Define premium, core, and entry price ladders.
3. Set trade spend floors and ceilings by category role.
4. Launch price moves in controlled retailer waves.
5. Track weekly net price and volume variance.

Examples

A snacks brand recovered 220 bps gross margin by reducing deep-discount frequency while introducing a smaller format at a strategic entry point.

FAQ

How often should FMCG pricing be reviewed?

Monthly in volatile periods and quarterly in stable periods.

Should we prioritize volume or margin first?

Prioritize profitable volume by segment, not aggregate top-line alone.