Worksheet: Write a one-page pricing strategy per category

When each channel head prices in their own way, the business has as many strategies as sales leaders. The budget percentage then stands in for all of them. This sheet puts one page per category on the table: the position, the channel gaps and this year's target. The heads of sales and marketing sign it together. It builds the Competent step of the check:

A one-page strategy says how each category is positioned against competitors and own-brand, and what price differences between channels we intend.

Step 1. Position each category

Use shelf prices any shopper can see. Set your price index against each rival at 100 for the same price.

Category	Role for us (grow, defend, harvest)	Main branded competitor	Our index against them	Own-brand in the category?	Our index against own-brand	Position (premium, match, below)
e.g. Cooking sauces	Grow	Brand B	110	Yes	160	Premium

Check each position against its reason. A premium needs a difference shoppers can see. Matching suits a product much like its rivals. Pricing below needs a cost advantage that lasts.

Step 2. The channel differences we intend

Set your main channel at 100 and give the shelf price you intend in each other channel.

Category	Main channel	Second channel	Third channel	Marketplace	Why each gap exists
e.g. Cooking sauces	Grocery 100	Convenience 125	Specialist 105	100	Smaller packs and costlier drops in convenience

A gap with no reason in the last column is one you did not choose.

Step 3. This year's price target by channel

Category	Channel	Net price per unit now	Target change (%)	Target net price	Owner
e.g. Cooking sauces	Grocery	$2.40	+3%	$2.47	Grocery account director

Step 4. The page

One page per category. Keep it to what fits in these boxes.

Box	Your words
We position (category) as
Against (named competitor) and own-brand we sit
The channel differences we intend
This year's target by channel
We will not
Signed by the head of sales, and date
Signed by the head of marketing, and date

Done when: every category has a one-page strategy that states its position against competitors and own-brand and the price differences you intend between channels. The heads of sales and marketing have signed it.

Adapted from our own pricing and trade-spend outline (PSP, 2013).