What You’ll Find in this Case Study:
- Highlights of the Case Study
- Game-Changing Solutions for the Food and Beverage Industry
- Portfolio Pricing Solutions Challenges of the F&B Manufacturer
- Portfolio Pricing Solutions for the Food and Beverage Industry
- Impact Analysis of Quantzig’s Portfolio Pricing Solutions
- Key Outcomes of Portfolio Pricing Solutions
- A Broad Perspective on the Role of Portfolio Pricing Solutions for the Industry
- Key Takeaways
Highlights of the Case Study:
|Client||A major manufacturer in the food and beverage industry located in the Asia Pacific wanted to implement a robust pricing strategy.|
|Business Challenge||The client approached Quantzig for a tailor-made pricing analytics solution capable of optimizing price, performing pricing structure across products and channels, and monitoring the price gaps in real-time.|
|Impact||Quantzig’s pricing analytics solution helped the client improve sales margins and leverage predictive modeling to manage promotions and prices.|
Game-Changing Solutions for the Food and Beverage Industry
The global food & beverage retail space is witnessing considerable growth owing to changing customer preferences, increasing global population, and a radical shift toward online shopping. The industry will witness rapid growth due to urbanization and the rise in disposable incomes. Along with the convenience factor, macroeconomic factors such as increasing consumer spending, the burgeoning GDP, and changing lifestyles are further contributing to the growth of the online food retail space.
In this highly fragmented, technologically driven world of digitally empowered customers, pricing analytics is the perfect solution for gaining a competitive advantage. A lack of an effective pricing strategy in the food and beverage industry can lead to difficulties and limit commercial outcomes. Through our cutting-edge pricing analytics tools, Quantzig assists companies in navigating this competitive industry.
Portfolio Pricing Solutions Challenges of the F&B Manufacturer
A major food and beverage industry manufacturer located in the Asia Pacific region collaborated with Quantzig to develop and implement a robust pricing strategy. The client approached Quantzig for tailor-made pricing analytics solutions capable of optimizing price, performing pricing structure across products and channels, and monitoring the price gaps in real-time.
Our client already had a successful beverage line, but it wanted to analyze the impact of different price points on the sales volumes across various channels. The client’s primary concern was evaluating the market landscape’s regulatory norms. It approached Quantzig to leverage its expertise in offering actionable pricing analytics solutions to transform its pricing strategy and increase sales margins. In addition, understanding its rivals’ pricing strategies was necessary for the client as it helped us adopt suitable pricing models. Some of the issues faced by our client revolved around the following:
- Transportation bottlenecks
- Sub-optimal pricing
- Tracking unnecessary competitors
- Changes in consumption pattern
- Lack of insightful data on competitors’ prices and discounts
Portfolio Pricing Solutions for the Food and Beverage Industry
Quantzig offered the client an AI-driven pricing analytics solution that extracted patterns and trends in customer behavior and tracked key pricing metrics. This solution would help the client to arrive at the right pricing strategy to maximize profits.
The client used the data intelligence solution to sell the beverage at the best price and time while optimizing profitability. Additionally, the algorithm created by our researchers examined the client’s pricing and combined it with marketing and sales data to recommend consumer preferences based on specific demographics. Our price analytics system helped analyze and predict the following attributes:
- Optimize pricing for value based on data-driven and actionable insights
- Discover profitable channels
- Gain insights on optimal pricing for each tier, pricing tiers, and matching products with tiers
- Provide insights on pricing gaps like overprices/underpriced products
Impact Analysis of Quantzig’s Portfolio Pricing Solutions
Quantzig’s pricing analytics solution helped the client improve sales margins and leverage the use of predictive modeling to manage promotions and prices. The AI-based software and applications allowed the client to offer food and beverages at affordable prices. Moreover, the pricing analytics solution focused on realigning their traditional marketing mix to impact profitability directly.
Quantzig provided the client with a store tiering tool and a roadmap on value-based product categorization, enabling the client to confidently price items across several regions. Quantzig’s solutions successfully determined the optimal selling prices for products, considering all production-line expenses.
Our solutions had the following impact on our client’s business:
- Streamlined profit and revenue management
- Optimized pricing and promotion strategies
- Real-time insights price fluctuations
Key Outcomes of Portfolio Pricing Solutions
Since food is one of the significant household expenditure categories, well-known companies in the food retail industry seek to invest in R&D to improve their product offers. The modern world of tech-savvy consumers with wafer-thin brand loyalties mandates companies to rely on price analytics solutions to win a significant share of the highly competitive and fragmented F&B market. Quantzig adopted a data-driven approach to price optimization that leverages predictive analytics, data mining, and AI-based methodologies. Quantzig helped the client craft a powerful promotional pricing strategy that could avoid price leakages, reveal pricing risks and opportunities, and achieve high-impact revenues.
A Broad Perspective on the role of Data Analytics Solutions in the F&B Sector:
Predictive analysis in the food and beverage industry is critical for growth, as it helps companies to maintain stock and monitor pricing trends in the industry. Predictive pricing uses machine-powered algorithms and big data technologies to pursue business goals. The overarching objective of retailers is to increase revenue achieved by price management. Predictive analytics (algorithms) are used by data scientists to avoid descriptive pricing and precisely determine the impact of price changes on sales. The predictive pricing model enables retailers to arrive at the correct price, which will help drive sales. The algorithms can process various data, allowing for a more comprehensive analysis and, thus, more accurate pricing strategies. Moreover, since it is a data-driven approach, it can be modified and replicated to drive results.
- Retailers set prices using machine learning algorithms to increase sales. Customers start buying more as they consider that the prices are reasonable.
- Retailers can replicate their success when the pricing is adequately maintained as they always know what triggered it.
- The complexity of the algorithms used to process the growing variety of data is rising, including the computational capacities. Retailers, as a result, make pricing decisions more quickly and alter prices more frequently.
Quantzig’s Data Analytics Solutions yielded the following benefits for the F&B Retailer:
- Eliminated bottlenecks and buyer experience issues
- Implemented demand analysis to drive production and supply
- Market segmentation based on typical customer characteristics
- Competitor analysis to arrive at the correct price
- Optimized pricing and promotion strategies
- Positively impact profit margins by enhancing sales