RGM introduction

Which is not one of the RGM levers?

• Discounting/promo management

• Strategic pricing

• Rich content management

• Mix management

Which pricing strategy is usually used in case of Fashion and Home and on market with Hyperinflation?

• Cost Plus

• Value based

• Competition based

• Skimming

Which statement about competition based pricing strategy is true?

• Business knows its costs are coverer

• Product may be priced uncompetitively

• Risk of price war/margin erosion

• Complex and requires customer insight

When product is inelastic it means that:

• Volume decrease is bigger than Price change

• Customer is less pricing sensitive

• There is no space for price increase

• Elasticity is at -1,5 level

To calculate DoD% we need to know:

• RP Sales & Gross Sales

• RP Sales and Units

• RP Sales and CP Sales

• UPR and NPU

In which situation Effective Price change equals avg CP change?

• Always for inline products when we analyze single marketing concept

• Always when Product Mix is not changed vs previous period

• Always for specific category when CP for particular marketing concept was not changed vs previous year

• Always when DoD% of newness is in line with DoD% from PY

Which statement about Mix is false?

• Higher share of sales of bigger sizes will be reflected in positive Size Mix impact on price

• Mix has an impact on avg CP

• Positive pricing Mix always leads to higher DP%

• Mix is not included in EBP calculation

Novelty from specific category is characterized by the higher DoD% than total category DoD% from previous period. What impact on EBP this product will have?

• Negative impact

• Positive impact

• No impact at all

• Negative impact but only on avg CP

CP sales = $ 10.000

Gross sales = $ 8.000

Cost = $ 2.000

What is the DP%?

• 80%

• 75%

• 60%

• 25%

We decided to implement linear 10% price increase on all our products. They are characterized by different DP% level. We have no other impacts. Where we should expect the biggest margin gain related to this price up?

• Product A

  DP% before price up: 50%

• Product B

  DP% before price up: 45%

• Product C

  DP% before price up: 65%

• Product D

  DP% before price up: 55%