This post is part II of our series on Key Value Items, or KVIs. Read Part I here, and other pricing work here. Identifying KVIs as a retailer is complex and hard, but it’s important enough that it must be done right. In the age… Read More »Key Value Item Series II: a KVI to whom?
In prior posts we’ve discussed the varying definitions of the Key Value Item (KVI) in retail. Setting aside the important differences, the core principle remains: KVIs are the most important SKUs in the assortment. And these items often warrant special treatment: competitive price monitoring, out-of-stock… Read More »A tactical guide to finding your Key Value Items (KVIs)
The standard definition of a Key Value Item (KVI) is “an item which drives the price/value perception for customers.” But we’ve found a wide variation in the actual interpretation and usage across our retailer clients. In this post (the first of three on KVIs) we’ll lay out four common definitions and grades each of them on how well they can actually be put to use.
Why is this important? Every single time a customer sees a price on your shelf, they update their opinions on your price and value equation. Understanding which products have large impacts and which have small is crucial to optimizing your pricing strategies (both promotion and everyday).