KVI - Key Value Items

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Do you know which 150 products make up your price image?

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Definition

KVIs (Key Value Items) are the products that have the greatest impact on a retailer’s overall price perception: those that customers easily compare across different retailers (milk, baguettes, eggs, smartphones, etc.). Being competitive on KVIs is essential to building a reputation for attractive prices.

The Essentials in 6 Questions

What?

A selection of 100 to 200 key items that define the brand's image and pricing strategy.

Who is it for?

Pricing teams, category managers, sales management.

When?

The list is updated at least once a year, and prices are monitored continuously.

Where?

For products that customers frequently purchase , find comparable, and have saved.

Why?

Appear competitive without sacrificing the profit margin on the entire product line.

How?

Criteria related to frequency, comparability, volume, and relevance, validated through customer surveys.

Why KVI stores shape the price image of the entire chain

Because customers judge a retailer's competitiveness based on a handful of key products, not on the entire product lineup.

  • Building the price image : a few references are enough to forge the perception of "expensive" or "cheap".
  • Focus competitive efforts: Rather than monitoring thousands of prices, we concentrate our monitoring and adjustments on key performance indicators (KPIs), for example, by collecting targeted competitor price data.
  • Optimize profitability: be aggressive on key performance indicators (KPIs) while maintaining margins elsewhere, to strike a balance between price perception and profitability.

Real-world example: 150 KVIs out of 10,000 SKUs

A grocery chain sets the price of 150 KVI items to match the cheapest competitor and makes up the difference on the other 9,850 items.

EXAMPLE CASE · PRICING GLOSSARY

150 products that define the brand's image and pricing strategy

Food Retail Chain · 10,000 items in total

150 KVI

identified and strictly aligned with the lowest-priced competitor, from among 10,000 product listings.

▼ 150 items

Priced to match the lowest price on the market, sacrificing profit margins

▲ 9,850 ref.

Slightly higher prices to compensate; not compared by the customer

Source: Case Study · Booper Pricing GlossaryBOOPER

Milk, coffee, water, bread, bananas, chicken: the retailer cuts its per-unit margin on these products and keeps prices slightly higher on everything else. As a result, customers perceive it as “cheaper,” even though the average shopping basket remains profitable, since few customers actually compare all the prices.

How do you identify your KPIs?

We cross-reference four criteria, then validate the list with the clients.

CriterionWhat We're WatchingExamples
Purchase frequencyFrequently Purchased Items.Milk, bread, eggs.
ComparabilityStandard products that are easy to compare across retailers.Domestic brands, fresh products.
VolumeProducts that account for a significant portion of revenue.Best-sellers in this section.
ProminenceProducts whose prices customers remember.Baguette, fuel.

These are often the very same price points that serve as loss leaders in marketing, and where a psychological price (€9.99 rather than €10) has the greatest impact. To identify your KPIs using data and prioritize tracking deviations, check out our price optimization software.

The 3 Common Mistakes with KVI

Too many KVIs, outdated KVIs, or failing to include competitors' KVIs negate the desired effect.

  • Too many KVI: 500 KVI means you have to monitor the entire product line. Limit yourself to 100–200 strategic SKUs.
  • KVI: Frozen in Time—Habits Change; Review the List at Least Once a Year.
  • Ignoring Competitors' KPIs: If your pricing for image-related products is higher than your competitors', you'll lose customers even with competitive KPIs.

See also common pricing strategy mistakes, price positioning, and shelf-price.

Frequently Asked Questions

Short answers to the most frequently asked questions about KVIs.

What are KVI (Key Value Items)?

KVI (Key Value Items) are the products that have the greatest impact on customers’ overall perception of a retailer’s pricing. These are the items that consumers easily compare across retailers and that directly influence the retailer’s price image: milk, baguettes, eggs, smartphones, etc.

How many KVI should be selected?

Between 100 and 200 products for a standard grocery assortment. The goal is to cover key categories without diluting efforts.

Are the KVI the same for all customers?

No. Families with children tend to remember the prices of diapers and infant formula, while single people tend to remember the prices of ready-made meals or beverages. Some retailers segment their key performance indicators (KPIs) by customer profile.

Do we always have to be the cheapest on the KVI?

Not necessarily. The goal is to be perceived as competitive: being in the top 3 or within 5% of the leader is often enough.

Key Takeaways

  • KVI products are the 100 to 200 items that customers use to evaluate your prices.
  • Be competitive on key performance indicators (KPIs ) and maintain margins on the rest of the product line.
  • Review the list at least once a year, and also keep an eye on your competitors' KPIs.

Would you like to label your KVI products and protect your price image?

Booper identifies the products that define your price image and monitors price deviations for those products as a priority.

Let's identify your KPIs together →Discover our pricing optimization software

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