Food Pricing Analytics Helps Frozen Food Supplier to Re-align their Pricing Strategies

Jan 2, 2023

What You’ll Find in this Pricing Analytics Case Study:

  • About the Client
  • Area of Engagement
  • Industry Overview
  • Challenges Faced by the Client
  • Pricing Analytics Solution and Business Impact
  • Price Analysis Solution Predictive Insights

Highlights of the Food Pricing Analytics Case Study

ClientMajor frozen food supplier with operations spread across the globe
Business ChallengeDifficulty defining the optimal pricing and pricing strategy to understand what drives the buying decisions
Solution ImpactUnderstood the impact of price differentials on market share and optimize their pricing based on revenues and profitability

The client – A renowned frozen food supplier with operations spread across the globe

Area of engagement – Pricing analytics

The frozen food industry is witnessing exponential growth with the rise in disposable income and the growing desire for convenience. The ease of use associated with the products is compelling consumers to shift their preferences toward the products and reduce their cooking and clean up time. With the rise in product innovations, prominent frozen food suppliers are planning to enhance their production capabilities to retain their position in the market. Moreover, the rising geriatric population and the increasing preferences for favor instant meals also contribute to the growth of the frozen food industry. Although the industry is witnessing promising growth, several factors may curtail the growth of the frozen food market. They include:

  • Inadequate cold chain infrastructure: Frozen food is normally kept at a set temperature, and any fluctuations in the temperature can further lead to the deterioration in the food quality. So, it becomes essential for the frozen food suppliers to ensure that they meet the required technical capabilities to reduce the waste and damage of food due to frequent handling and transfer. Moreover, frozen food suppliers need to devise new strategies to develop better cold storage systems and ensure better conditions in the warehouses.

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  • Fresh over frozen: The consumers’ buying preferences are changing, and people prefer the need for natural ingredients in their food products. The numerous advantages of fresh products over frozen products, such as nutritional benefits, are compelling companies to add more natural flavors into their product offerings.

To address such challenges and understand the relative pricing trends in the market, businesses are facing the need for a price analysis solution. In the frozen food market, price analysis solution helps suppliers understand the pricing points and identify the internal and external factors affecting profitability. Moreover, businesses can identify the pricing opportunities and align its pricing strategies to improve the business performance.

Food Pricing Analytics Challenges

The client, a renowned frozen food supplier, wanted to define the optimal pricing and pricing strategy to understand what drives the buying decisions. With the help of a price analysis solution, the client wanted to maximize their revenues in terms of their sales and profit margins. The frozen food supplier also wanted to identify the right price points to maximize sales and promote pricing to achieve profit targets. The primary objective of the frozen food supplier was to streamline its pricing patterns to understand the impact of price promotion on brand equity.

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pricing analytics

To know more about how our pricing analytics solution helped the frozen food supplier, request more information.

Food Pricing Analytics Solution Benefits and the Business Impact

Strategies that we recommend to improve product pricing and enhance the ROI.

The price analysis solution offered by Quantzig helped the frozen food supplier estimate the impact of pricing on sales volume. The frozen food supplier was able to understand the impact of price differentials on market share and optimize their pricing based on revenues and profitability. The price analysis solution also offered insightful ways for the frozen food supplier to predict the bid prices based on the historical data and position their products effectively so that they are in line with the competition.

Food Pricing Analytics Solution Predictive Insights

The price analysis engagement offered granular insights on the relative price points, demand elasticity measures, and optimization to maximize profit margins. With the help of pricing agility, the frozen food supplier was able to stay ahead of the curve and enhance its performance in the market. The engagement also assisted the client to monitor the market closely and anticipate the impact of a price change on promotional campaigns.

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