About this course: In this project-centered course, Darden's Ron Wilcox and BCG's Thomas Kohler will walk you through a real-world case, from problem statement to detailed analyses. You'll use all three lenses (cost, customer value, and competition) to recommend an optimal price—and then adjust to market disruptions. Utilizing the concepts, tools and techniques taught in previous Specialization courses—from basic techniques of economics to knowledge of customer segments, willingness to pay, and customer decision making to analysis of market prices, share, and industry dynamics—you will practice setting profit maximizing prices to improve price realization. You'll finish the course with a portfolio-building project that demonstrates your pricing prowess.
Created by: University of Virginia, BCG
Taught by: Jean Manuel Izaret, Senior Partner and Managing Director, Leader of BCG’s Global Pricing Practice
Taught by: Ronald T. Wilcox, NewMarket Corporation Professor of Business Administration & Senior Associate Dean for Degree Programs
Marketing
Taught by: Thomas Kohler, Associate Director, Pricing
Marketing, Sales & Pricing Practice
| Basic Info | Course 4 of 4 in the Pricing Strategy Optimization Specialization |
| Level | Intermediate |
| Commitment | 4 weeks of study, 4-6 hours/week |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Retail Market Dynamics
Welcome to the course! We'll kick off the week with an overview of the project, which centers around Philips introduction of an eco-friendly light bulb. Once you've read the case, Thomas and Ron will guide you as you apply the cost lens to analyze the economics of the LED light bulb Philips has introduced to the market. After you've analyzed the economics of the case, Ron and Thomas will debrief to make sure you are on the right track. You will also hear from BCG pricing experts, who will share their lessons and tips gleaned from years of helping clients in multiple industries optimize their prices and improve the bottom line.
15 videos, 5 readings
- Video: Pricing Specialization Overview
- Video: Three Lenses
- Video: Course Overview
- Reading: Course Overview & Requirements
- Reading: Survey
- Discussion Prompt: Connect with your classmates!
- Video: Developing the Three Lens Framework
- Video: Using the Three Lenses
- Video: Knowledge Is Not Enough
- Video: Case Intro
- Reading: Philips: Pricing the LED Bulb (A)
- Video: Getting Started Assignment 1
- Reading: Week 1 Case Questions
- Video: Review: Basic Metrics of Pricing: Margins and Markups
- Video: Calculating Power Usage and Cost
- Reading: Case-based Learning at Darden
- Discussion Prompt: Beginning your case analysis
- Video: Assignment Debrief--Superbulb Failure
- Video: Assignment Debrief--LED Price Considerations
- Discussion Prompt: Is the 55% retailer margin justified?
- Video: Assignment Debrief--Retailer Margin Justification
- Video: Assignment Debrief--Customer Economics
- Video: The Myth of the Invisible Hand
Graded: Superbulb Economics
Graded: LED Price Considerations
Graded: Customer Economics
WEEK 2
Customer and Conjoint Analysis
This week, we will dig deeper into customer value using conjoint analysis to determine the price sensitivity of consumers and businesses. Thomas and Ron will show you how to graph the conjoint data to easily compare these two markets--and you'll do additional analysis of the conjoint data to learn more about what consumers value. Using your analysis, you'll hone your pricing recommendation.
8 videos, 1 reading
- Video: Assignment 2 Intro
- Reading: Week 2 Case Questions
- Video: Conjoint Analysis: Steps 1 – 3
- Video: Conjoint Analysis: Step 4 and Product Preferences
- Video: Attribute Trade-offs
- Video: Attribute Importances
- Video: Conjoint Analysis: Willingness to Pay
- Video: Learning about the Market Using Conjoint Analysis
- Video: Assignment Debrief--Calculating WTP Using Conjoint
Graded: Learning about the Market Using Conjoint Analysis
Graded: Calculating WTP Using Conjoint
WEEK 3
Price Recommendation
This week, you will pull everything together to make a pricing recommendation for Philips. You will recommend which markets they should serve (B2B, B2C, or both) and how they should price their LED bulbs. You'll learn how to lay out your thought process and rationale in a tightly edited slide deck that presents your recommendations in a compelling way.
2 videos
- Video: Getting Started: Assignment 3
- Video: Assignment 3 Debrief
Graded: Recommend a Strategy for Philips
WEEK 4
Curveball
This week, you will respond to new developments in the LED light bulb market: a new competitor and new regulations. Just like in real life, you'll need to adjust your strategy when the competitive landscape changes and new regulations emerge and reconsider the retail marketplace and reevaluate the B2B market. You'll also head out into your own "real world" and do some detective work about the LED bulb market in your area and relate those finding to the case. We'll finish the course with BCG pricing experts sharing their insights into what makes pricing such a rewarding field.
15 videos, 2 readings
- Video: Getting Started: Assignment 4
- Reading: Philips: Pricing the LED Bulb (B)
- Reading: Week 4 Case Questions
- Discussion Prompt: If Philips enters the B2C market...
- Video: Signaling Games
- Video: Extensive Form Signaling Games
- Video: Gas Wars and Takeaways
- Video: Competitor Pricing Models
- Video: Competitive Price Moves: Understand Competitive Dynamics
- Video: Competitive Price Moves: Assess Your Options
- Video: Competitive Price Moves: Choose and Execute Best Move
- Video: Price Wars
- Video: Assignment 4 Debrief
- Discussion Prompt: What did you see in your local market?
- Video: The Three Lenses Across Industries
- Video: The Art and Science of Pricing
- Video: A Career in Pricing
- Video: Why I Love Pricing
- Discussion Prompt: Update your resume!
- Video: Course Conclusion
Graded: Responding to Competitor Moves
FAQs
How It Works
Coursework
Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.
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Creators
University of Virginia
A premier institution of higher education, The University of Virginia offers outstanding academics, world-class faculty, and an inspiring, supportive environment. Founded by Thomas Jefferson in 1819, the University is guided by his vision of discovery, innovation, and development of the full potential of students from all walks of life. Through these courses, global learners have an opportunity to study with renowned scholars and thought leaders.
BCG
We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com.
Pricing
| Audit | Purchase Course | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
| Receive a final grade | Not available | Available |
| Earn a shareable Course Certificate | Not available | Available |
Ratings and Reviews
An excellent specialisation - I enjoyed every minute of it. Good teachers, well thought through material presented with some humour.
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I think that this case is nice, but we should have more exercises do practice on them!