The right pricing can be an effective way to increase profits. A strong brand allows for better premiums as illustrated in this example: For the average income statement of a Standards & Poor 1500 company, a price increase of 1 percent, if volume remained stable, would generate an 8 percent increase in operating profits. An impact almost 50 percent greater than that of a 1 percent decrease in variable costs like materials and direct labour, and more than three times greater than the impact of a 1 percent increase in volume.

Pricing and its many opportunities is one of the most ignored marketing parameters. Rarely does marketers raise prices. The function tends to worry about the effect on consumer and distribution responses despite the effects on the bottom-line which outweighs the potential responses. Price is also a guiding factor on quality perception, positioning and brand image, so potential price increases can in many instances help enhance brands and their equity.

Asian companies need to move up the value chain to increase shareholder value over the next 10 to 15 years through effective, CEO-led brand building. Pricing can play an important role in this process and support the chances for survival in the global market place.