Price Optimization at Northern Group Retail

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : MKTG085 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra


Case Length : 9 Pages
Period : 2002-2003
Pub Date : 2004
Teaching Note : Available
Organization : Northern Group Retail
Industry : Retailing
Countries : Canada


The case discusses the implementation of price optimization software at Northern Group Retail, a major clothing and accessories retailer based in Toronto, Canada. The Northern Group was experiencing a decline in performance due to its pricing strategy, which followed nation-wide pricing rather than zonal pricing.

Due to this, the company was not tuned-in to local conditions and implemented the prices uniformly. This led to the company losing out on substantial revenues by implementing mark-downs in places where the goods had the potential to sell at full price.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies


• To understand the critical nature of pricing strategy, especially in the retail sector.

• To compare zonal pricing strategy with uniform pricing strategy and analyze the suitability of each in different situations.


  Page No.
New Software Begins to Pay 1
Background Note 2
The Northern Group under York 3
The Price Optimization System 3
Benefits Obtained 5
Exhibits 7


Implementation, price optimization, software, Northern Group Retail, clothing, accessories, retailer, Toronto, Canada, pricing strategy, zonal pricing, tuned-in, local conditions, prices uniformly, substantial revenues, implementing, mark-downs, goods, full price

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