Smarter Pricing: How to capture more value in your market

How price can convey differentiation

Where prices are significantly different from standard, this can alert the customer to an element of differentiation.

Bananas are one of Europe’s favourite fruits and sales have grown rapidly. At the same time, media stories have highlighted poor living conditions of banana growers. In response, the concept of Fairtrade bananas emerged. Producers would receive a ‘fair price’ for their produce. In 1996 these bananas were only available in Germany, Belgium and Switzerland through small independent outlets. Consumers responded positively and, by 2002, 20 percent of Switzerland’s bananas bore the Fairtrade identifier. Fairtrade bananas were first sold in the UK in January 2000, initially by retailers J. Sainsbury ...