Vistaar Product Lifecycle Pricing

The Importance of Product Lifecycle Pricing

Pricing Management Solutions

Product Lifecycle Stages

Manufacturing companies that fail to properly price products and

services across the lifecycle, struggle in the realization of revenue
and margin goals, particularly in innovation-intensive sectors such
as high technology, medical and consumer electronics.
A number of factors contribute to an appropriate lifecycle pricing
strategy, which will vary based on business objectives, product
type, channels and the competitive environment. Many companies
try to manage the critical and complex process of lifecycle pricing
in a combination of spreadsheet and enterprise systems, resulting
in poor-decision making, inconsistent processes, and lost revenue
and margin.
Vistaars software for price management solutions empower
marketing, pricing, and sales teams to leverage product lifecycle
and customer value based pricing strategies and analytics for
better product portfolio planning, price setting and execution.

Product Lifecycle Pricing Considerations

Product lifecycle decision-making is complicated by a number of
qualitative and quantitative factors that must be considered in
price management through each stage of the lifecycle. These
considerations include:
Portfolio of Products: New products must be introduced with an
understanding of the impact on complementary and bundled
solutions as well as products that they may replace at different
stages of the product lifecycle. The product portfolio should be
segmented based on product and customer attributes with an
appropriate strategy applied to each.
Lifecycle Stage: Pricing for products must be constantly monitored
and re-evaluated as they go through the product lifecycle, from
product introduction, through growth, maturity and end-of-life,
with an understanding of pricing impact on lifecycle revenue and
profit.

Product Differentiation: New products have varying degrees of

differentiation from substitute or competitive products, which
may drive whether value-based pricing, penetration pricing, costplus or some other strategy should be employed to achieve
product objectives.
Channels and Customers: Products may be sold directly through a
price list, through distributors and buying groups, through a
complex direct sales process, or as part of an OEM solution, and
often a product may be sold through multiple channels. In
addition to rationalizing and maintaining consistency of product
positioning and pricing across channels, there may be
differentiated pricing strategy by customer based on segmentation
profile, customer value and business risk.
Product Supply: For new products, as well as for products in later
lifecycle stages, there may be supply or service constraints across
geo and channel, which may have long term business impact.
Pricing appropriately can be used as a demand shaping tool to
align demand with available supply.
Product Bundling: Often the initial revenue for a new product is a
fraction of the lifetime revenue that is delivered through
associated consumables, product bundles or kits and aftermarket
service. All sources of revenue through the product lifecycle
should be considered when setting launch prices, so that the
portfolio and lifecycle margins are accounted in price setting and
not just initial margins.

Vistaar Solutions for Product Lifecycle Pricing

Vistaar offers a comprehensive solution suite to better manage

pricing throughout the product lifecycle, allowing collaborative
workflows across the organizations responsible for pricing
decision-making. These solutions can be implemented as an
integrated solution, or as point solutions prioritized based on
business needs. Relevant solution areas include:

Product-, customer- and situation-based use of pricing

techniques to optimize list prices, as well as provide
pricing guidelines with price bands, discount guidance by
product and channel to support deal management
processes
Forward looking scenarios to analyze the impact of
pricing on stand-alone and bundled solutions throughout
the product lifecycle

Portfolio Management
Product portfolio planning integrates corporate objectives and
analyzes the entire range of products at each stage of the product
lifecycle.
Vistaars advanced planning technology enables
comprehensive portfolio analysis and management through the
use of advanced analytics and price science capabilities.
Scorecards and analytical templates to monitor overall
portfolio performance
Ability to identify products and services that are positively
and negatively contributing to the organization goals, and
identify products for phase-out and opportunities for new
configurations and bundles
Model the revenue and margin impact of product
introductions and perform scenario analysis on the future
impact of pricing as well as portfolio changes

Vistaars Price Structure Workbook manages complex

price structures by product and channel for products at
each stage of the product lifecycle

Deal and Contract Management

Sales and sales operations users gain insight into customer and
contract performance that can be leveraged during renewals and
new negotiations and ensure compliance to pricing guidelines.
Track price, volume and mix for contracts
Proactively analyze and manage contract life-cycles
whether existing, new or renewal
Get optimized price recommendations for reference
along with peer group comparison
Forward-looking impact analysis (e.g. Cap pricing or
component pricing change impact)

Vistaars Scenario Planning gives you full visibility into

revenue and margin impact of product marketing and
sales actions as you manage the product portfolio

Price Setting
Vistaar enables users to set and manage list prices by product
attributes, customer segments, customer value and profiles,
stages of product lifecycle, product differentiations, and
competitive position.
Dashboards to help various stakeholders including
product management, sales operations and pricing get
visibility on price performance across the process and
understand opportunities as well as risk for product
introduction and phase-out

Vistaar Product Lifecycle Pricing

Vistaars Customer and Deal Dashboards track deal

performance to assure that sales teams execute to
guidelines set in the price setting and guidelines process

Frequency

Response

Supported by Pricing Science

Margin

Vistaars solution for price planning and optimization across the

product lifecycle includes powerful price recommendation
techniques that work hand-in-hand with our best in class analytical
and planning capabilities. The solution is uniquely suited to
address the complexities associated with B2B pricing - large
portfolios, highly configured and/or bundled offerings and
datasets that are often imperfect and maintained in disparate
sources.

Volume
Price
Optimization

Segmentation

The Vistaar solution empowers business users to see the forwardlooking impact of their price changes through what-if scenarios
before the updates are published to the field. Additionally,
decision makers from across the company can see the forward
impact of selecting various combinations of scenarios. This type of
analysis is invaluable to the review and approval process, as it
provides the visibility required to make fast, impactful price
updates with confidence.

Vistaars price optimization comes complete with a library of

pricing techniques; many of which are unique to the solution, and
can be applied as each situation requires, and may be adapted
through the product lifecycle. For example, a new products price
sensitivity and penetration rate may be based on replacement or
substitute products in some cases. As the product goes through its
growth phase, product attributes are monitored and updated, and
planning models adjusted accordingly.
Sales
Operations

Price
Elasticity

Executive
Management

Vistaars Solutions are modular in nature and

enable fast and easy configurations to support
specific roles and processes across functions
that support product lifecycle pricing

Product
Management

Finance

Marketing

Sales

The Vistaar Value Proposition

Improved profitability
Better productivity
Smarter decisions
Mitigation of customer and partner revenue leakages
More effective promotions and price changes

Improved deal negotiations

More control
More effective deployment of strategies
Improved field empowerment

The Vistaar Pricing Platform Advantage

Flexibility: Enables modeling of highly complex organizations, products, market segments, and workflows
Integrated Simulation Capabilities: Scenario planning for any function or level; integration between planning and execution
Business-driven User Interface: Versatile UI which facilitates user adoption and supports alerts and analysis
Extensible Architecture: Enables integration of other processes into a single unified data model and pricing platform

Vistaar is a leading provider of price management solutions. Vistaars pricing software enables companies to achieve pricing best practices through price analytics, price
optimization, price list management, and deal management. Vistaar is working with some of the worlds largest manufacturers, distributors and service providers to
transform pricing operations into a strategic advantage. For these companies, Vistaar pricing solutions drive measurable price and margin improvements that deliver
profitable growth and maximum shareholder value. Vistaars operations include six offices across North America, Europe and Asia.
Vistaar Headquarters
200 Lanidex Plaza
Parsippany, NJ 07054
UNITED STATES
Tel: +1 973 581 6300

Vistaar Product Lifecycle Pricing

European Office
One Kingdom Street
London W2 6PY
UNITED KINGDOM
Tel +44 203 356 9773

Asia Office
201 Raheja Point 1, Pt. J. Nehru Road
Vakola, Santacruz (East), Mumbai, 400 055
INDIA
Tel +91 22 6693 1444

Copyright 2013
DS-VPLP-313
Vistaar Technologies, Inc.