This episode offers an invaluable look into how a legacy brand like Graco, under Newell Brands, navigates the complexities of product pricing in today's volatile retail landscape. Learn how they leverage AI to understand customer willingness to pay, mitigate tariff impacts, and collaborate with retailers to maintain affordability and market share. This is a must-listen for ecommerce operators seeking to balance profitability with consumer value in an ever-changing economic environment.
Key takeaways
Implement AI to analyze customer personas and willingness to pay, allowing for dynamic and optimized pricing strategies.
Develop strong collaborations with retail partners to align on pricing, assortment, and even store layout to maximize sales and ensure consistent brand messaging.
Proactively engage product development teams in pricing discussions to ensure that innovation aligns with cost-effectiveness and sustained affordability.
Explore strategies to mitigate external cost pressures, such as tariffs, without solely resorting to direct price increases that could alienate cost-conscious consumers.
Strategically leverage a brand's reputation for affordability as a competitive advantage, especially in markets with high-priced startups, by consistently delivering value.
Themes
ai in ecommercebrand managementpricing strategyretail collaboration
This week on the Modern Retail Podcast, special projects editor Melissa Daniels speaks with Kris Malkoski, the president of learning and development at Newell Brands who oversees operations for household brands including Graco and Sharpie. They go behind-the-scenes into how the 100-year-old baby gear brand Graco, known for its affordability against higher-priced start-ups, is approaching pricing strategies in an increasingly volatile retail environment thanks to AI, tariffs and cost-conscious shoppers.
Daniels interviews Malkoski about how Graco mitigated tariff-related price increases, how the brand is increasingly using AI to help dial in what prices a customer is comfortable paying, and how brands and retailers work together to align on pricing and assortments. Their conversation also gets into:
The product development teams that play a role in keeping pricing competitive and affordable
How AI is changing the way Graco approaches customer personas
The ways Newell Brands works with retailers to help inform pricing and layout strategies that move units
Implement AI to analyze customer personas and willingness to pay, allowing for dynamic and optimized pricing strategies.
What does this episode say about brand management?
Develop strong collaborations with retail partners to align on pricing, assortment, and even store layout to maximize sales and ensure consistent brand messaging.
What does this episode say about pricing strategy?
Proactively engage product development teams in pricing discussions to ensure that innovation aligns with cost-effectiveness and sustained affordability.
What does this episode say about retail collaboration?
Explore strategies to mitigate external cost pressures, such as tariffs, without solely resorting to direct price increases that could alienate cost-conscious consumers.
What does this episode say about ai in ecommerce?
Strategically leverage a brand's reputation for affordability as a competitive advantage, especially in markets with high-priced startups, by consistently delivering value.
