Abstract

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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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.

Keywords

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