Food Supplier Achieves 6-8% Sales Growth through the Implementation of Pricing Analytics

Sep 22, 2016

Business Challenge

Implementation of a robust pricing analytics solution. A leading client in the food suppliers space wanted to conduct a pricing analysis exercise to develop optimal pricing strategies.


Reliance on traditional price setting methods resulting in inaccurate pricing strategy

The client in the food suppliers space had seen frequent change in competitor pricing and wanted to understand the impact on own products and also decide on optimal pricing for both premium and standard variants.

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Pricing analytics solution enabling dynamic pricing at SKU and product levels

We conducted an in-depth analysis on the current demand, actual sales, and competitor prices. We constructed models to analyze price elasticity and sensitivity across the categories and variants. We also created scenarios to simulate the price change impact in relation to competitor pricing levels as well.


Improved sales growth through implementation of pricing analytics solution

The client in the food suppliers space achieved visibility on current price performance, demand, and price variations. Also, they were able to implement a robust process based on the price elasticity model for a better understanding of the impact of changes in competitor pricing. The key benefits achieved include reduced wastage and inventory cost for low performing categories, resulting in an overall sales growth of 6-8%.

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