A price comparison analysis is an endeavor which aims at comparing and contrasting the prices of two or more products of a similar category in order to form conclusions about net gains, target clientele aimed at, nature of branding, cost of production and net revenue generated from product. Such an analysis enables key decisions about marketing and distribution to be taken, and thus a price comparison analysis must be well represented in the form of a report.

Sample Price Comparison Analysis:

Item 1 and producer 1: Delight Body Spray from Chunnel


Item 2 and producer 2: Fragrance Summer Spray from NHKK.

Nature of comparison:

  • The price comparison analysis is aimed at establishing the reasons for the differing sales revenue of these two products which fall under the same bracket of aerated deodorant spray, of a similar price bracket.
  • To create a cogent marketing plan based on the conclusions of the price comparison analysis.

Salient features of price comparison:

  • Item 1 is priced at 70USD per bottle of 300ml and Item 2 is priced at 95USD for the same amount. The sales revenue generated for Item 1 for the year 2012-2013 is 1mil USD and that for Item 2 is 1.5 Mil USD.
  • The greater revenue generation for the second product despite its increased price indicates the customers prefer to choose more well known brands despite the steeper price. Thus, Item 1 should be marketed only after a brand and recall value have been created.
  • Item 1 is also a newer entrant in the market, and hence, it must be marketed as an equally good, if not better, and cheaper alternative to Item 2 for sales to pick up.

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