Price under pressure: BayanMart’s pricing dilemma in a volatile economy
Sandeep Puri, Maria Theresa Manalac, Sanjib DuttaLearning outcomes
The key learning objectives are as follows:
Case overview/synopsis
In May 2026, Miguel Santos, Chief Executive Officer of BayanMart Retail Corporation, faced a critical pricing dilemma as the economic fallout from the 2026 Iran war intensified across the Philippines. Rising fuel prices, inflation, peso depreciation and supplier price increases significantly raised procurement and logistics costs, while weakening consumer purchasing power resulted in smaller basket sizes, downtrading, lower store traffic and growing demand for private-label products. In April 2026, BayanMart’s revenues and gross margins had declined sharply, raising concerns about the sustainability of its low-margin, high-volume business model. At the same time, competitors adopted divergent pricing strategies, creating further uncertainty in the market. As Santos prepared for an important board meeting, he had to evaluate whether BayanMart should pass rising costs on to consumers, absorb them to protect customer loyalty or adopt a hybrid approach. The case explores the trade-offs between profitability, customer retention, competitive positioning and long-term resilience in a volatile retail environment.
Complexity academic level
This case is suited for MBA and undergraduate courses (including online courses) in Marketing, Strategy and Retail Management. It can be used to discuss pricing under inflation, competitive response and how macroeconomic shocks shape firm-level decisions in emerging markets.
Subject code
CSS8: Marketing.