Overview

A major nutritional supplements company sought to modernize and rationalize its product pricing strategy across multiple brands and distribution channels. The goal was to move from a traditional, cost-plus pricing model to a value-based framework — one that aligns price with customer perception of value, strengthens competitive positioning, and maximizes profitability across its portfolio.

Challenge

The company faced several pricing and portfolio challenges:

• Overlapping product lines and internal price inconsistencies
• Eroding margins across retail and distributor channels
• Unclear differentiation between premium and mass-market brands
• Lack of a structured process to measure and communicate product value
• Price competition from Amazon

Approach

We applied our Strategic Value-Based Pricing Framework to reset pricing foundations.

• Conducted management interviews across strategy, marketing, and finance to align on pricing objectives and challenges
• Conducted external interviews with doctors and nurse practitioners, nutritional supplement users to understand their expectations and price sensitivity to the company’s nutritional supplements
• Reviewed historical data on volume, margins, and channel performance
• Analyzed competitor benchmarks and customer value perceptions

Solution

Our team designed a comprehensive pricing model tailored to the company’s product portfolio and channels.

• Mapped price-value positioning versus key competitors using our proprietary analytical tools
• Developed pricing corridors defining optimal floors and ceilings for each brand
• Identified “quick win” revenue opportunities through margin and price dispersion analysis
• Evaluated strategic pricing alternatives: conservative, aggressive, and balanced pricing approaches

Results

• Delivered a unified pricing strategy across all supplement brands and sales channels
• Created actionable price-value maps highlighting each product’s competitive standing
• Provided a dynamic pricing framework to guide ongoing decisions and scenario testing
• Recommended a value-based pricing roadmap balancing simplicity, scalability, and profitability

Impact

The engagement provided a data-driven foundation for pricing discipline and long-term growth. By linking customer value, competitive dynamics, and financial performance, the client gained a clear path to optimize revenue while reinforcing brand equity across its nutritional portfolio.