Northern Group - Pricing4Profit*



Mini Case Code : CLIM025
Publication date : 2005
Subject : International Marketing
Industry : Retail Chain
Length : 05 Pages
Price : Rs. 100

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Key words:

The Northern Group Retail Ltd., Northern Group, clothing, accessories, Northern Reflections, Northern Traditions, and Northern Getaway, pricing, inventory management systems, apparel market, nationwide pricing strategy, uniform prices, uniform markdowns, zonal pricing strategy, pattern of demand, potential demand, pricing decisions, Karabus, 'price optimization' system, price optimization software, Pricing4Profit, ProfitLogic, SKU (Stock Keeping Unit), software vendor, trend analysis, predicted demand


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The caselet explains the pricing strategy of Northern Group Retail Ltd., a popular apparel and accessories company in the US and Canada. It analyzes how the company benefited from zonal pricing. The use of price optimization software that enabled the company to drastically improve its sales volumes and how the software helped the company in understanding the needs, tastes, and preferences of the consumers better, also form part of the caselet.


Northern Group's pricing strategy
Nationwide pricing vs. Zonal pricing
Price optimization software and its role in improvising sales
How price optimization software can improve the effectiveness of business


The Northern Group Retail Ltd. (Northern Group) was set up in 1985 as a subsidiary of FW Woolworth Company (Woolworth). Woolworth was founded in the US in 1911 and it started out as a five-and-ten cent store selling general merchandise...

Questions for Discussion:

1. What were the drawbacks in Northern Group's pricing strategy? What is the rationale behind zonal pricing for retail groups?

2. Northern Group Retail obtained considerable benefits through the implementaion of price optimization software. Comment on the method used by the company to install a new application to improve processes.

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3. Australia's Leading Retailer Woolworths' Retail Operations