B&Q overhauls pricing strategy
Published: 20 December, 2011
LONDON: B&Q is overhauling its pricing strategy by replacing the complex promotional structure with a simpler system that it says "removes the need for shopping around".
It will no longer offer cumulative price promotions such as 50% off with a further 15% off, instead it is emphasising its price promise to beat competitors' discounts in a bid to give consumers more confidence in the prices they will pay at B&Q.
Katherine Paterson, B&Q's marketing director, says: "The market is so complicated in terms of price and the pressure to calculate what something costs, but consumers need confidence in the price. We want it to be as simple and clear as possible."
She says a more simple pricing strategy will mean customers can spend more time in store looking at products and having "good conversations" with staff to make the right purchase decision.
Ms Paterson says next year B&Q's strategy focuses on three areas; simple transparent prices, "fantastic" new ranges and expanding its help and advice programme. B&Q plans new product ranges next year as part of owner Kingfisher's ten-year strategy to build its own label ranges.