Business Challenge
Implementation of a robust pricing analytics solution.
A leading supermarket chain in the US wanted to conduct a pricing analysis exercise for its grocery line of products that had premium as well as standard variants.
Speak with our analytics experts today to know more about pricing analytics and how it helps organizations implement an analytics-driven approach to price and discount optimization for improving sales and gaining market leadership.
Situation
Reliance on traditional price-setting methods resulting in reduced sales than competitors.
The client had seen a frequent change in competitor pricing and wanted to understand the impact on their own products and also decide on optimal pricing for both premium and standard variants.
Solution/Approach
Price analytics solution enabling dynamic pricing at SKU and product levels.
We conducted an in-depth analysis of the current demand, actual sales, and SKU performance. We constructed models to analyze price elasticity and sensitivity across the SKUs and variants. We also created scenarios to simulate the price change impact in relation to competitor pricing levels as well.
Don’t know where to begin? Request a free proposal to learn about Quantzig’s cutting-edge price forecasting solutions and how they will drive tangible results for your organization.
Impact
Improved sales growth through the implementation of retail pricing strategy.
The client achieved visibility on current SKU 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 SKUs, resulting in overall sales growth of 9-11%.
