CPM RETAIL PROGRAM:

Module 1: Introduction 

• Acquaintance & mutual introductions 

• Learning objectives & course outline 

• Setting the scene: The strategic importance of pricing in retail 
   

Module 2: Retail Pricing Strategy 

• Understanding different pricing approaches: 
  EDLP, HiLo, Premium, Aggressive, Surgical 

• Selecting the right pricing strategy based on business goals: grow, defend, keep 

• Omni-channel price alignment: how to design and implement consistent pricing across channels 

• Get clarity about the best pricing strategies for you own banners and categories 
   

Module 3: Price Perception 

• Behavioral pricing fundamentals: how consumers perceive price and value 

• Key pricing psychology concepts: loss aversion, transaction utility, precise pricing, power of free, anchoring, asymmetric dominance, extremeness aversion, unit framing, IKEA effect, social proof, endowment effect 

• Understaning the relevance of price fairness and the limitations of price discrimination 

• Practical applications and examples of price perception in action 

Module 4: Pricing Execution – Differentiation 

• Defining category roles: Strategic, Driver, Core, Builder, Impulse 

• KVI (Key Value Item) definition and logic: data-driven scoring models to identify high-impact items 

• Private label pricing dynamics and their role in overall pricing strategy 

• Group exercise: brainstorm KPIs to develop a scoring model for category/KVI segmentation 
   

Module 5: Pricing Execution – Optimization 

• Competitive pricing: game theory in action – how to select the relevant competitors, beat/match/approach their prices while avoiding a downward spiral race to the bottom 

• Elasticity-based pricing: understanding and calculating price elasticity to inform decisions, learning different mathematical models to estimate it based on historic transactions, dealing with data scarcity 

• Designing pricing architecture across the assortment from bundling to good-better-best pricing 

• Group exercises: competitor scorecard KPI brainstorm + elasticity calculation example 
   

Module 6: Pricing Execution – Tactics 

• Evaluating promotional effectiveness and markdown strategies 

• Estimating the ROI of promotions differenting between baseline sales and real net promo uplift 

• Introducing the six promotional design levers and understanding typical pitfalls  

• Applying zone pricing and price localization by region, store type, or customer segment 

Module 7: Pricing Enablers 

• Organization & governance: defining ownership and roles within the pricing team, understanding the pros and cons of centralized versus decentralized decision making – how to best split tasks 

• Key processes and price performance monitoring systems: best-in-class dashboards and analytics to derive actions 

• Introduction to dynamic pricing tools: key functional requirements, how to select the best tool, make-or-buy, success factors for the implementation 

• Group exercise: map out your own organizational pricing structure 
   

Module 8: Next Steps 

• Consolidation of key learnings and individual reflection 

• Definition of an action roadmap to implement pricing improvements 

• Overview of the CPM Retail certification exam process