Analyzing the Impact of Price Changes and Promotional Cadence Using Pricing Analytics – A Case Study by Quantzig

Sep 24, 2019

We recently completed an engagement for a Belgium based sports apparel retailer that demonstrates the significant revenue lift that retail chains can realize through markdown optimization and advanced pricing analytics.

About the Client

The client- a leading sports apparel chain based out of Belgium wanted to defend its market share against big-box, price-driven retailers in the region.

The Business Challenge

Growing competitive pressures and aging inventory don’t just affect traditional retail outlets, online channels are equally susceptible. In such a scenario, optimizing pricing decisions represents one of the largest, multi-million dollar opportunities for organizations to drive incremental revenue. Our pricing analytics solutions empower businesses to make analytics-driven pricing decisions to support their strategic goals. Through our unique combination of advanced analytics, business intelligence, and robust pricing analytics frameworks we help our client proactively address their challenges.

Though organizations understand the importance of data in making pricing decisions, many have not yet stepped up to the challenge of managing the huge volumes of data needed to get the pricing right. Request a free proposal to gain in-depth insight into the role of machine learning algorithms in driving better pricing outcomes.

Moreover, in today’s fast-paced business environment developing and implementing a robust pricing analytics framework is imperative. In our recent engagement, we collaborated with a leading sports apparel retailer who was concerned about optimizing prices to drive sales. They were looking at leveraging our pricing analytics solutions to develop a robust framework and better understand the impact of price changes and promotional cadence on the overall sales.

The retailer’s current approach to pricing relied on price forecasts and market trends that did not take into account important variables such as seasonality and promotional cadence. What added to the complexity was the sheer number of segments and brands within these categories and the inclusion of new products at the SKU level. The client was keen on gaining pricing visibility to analyze the cause of lost sales and quantify the price mismatches that led to a decline in sales.

Our pricing analytics experts can help you analyze the role of pricing in driving better business outcomes. Would you like to learn more? Contact our experts right away!

Solution Offered and Value Delivered

To help the client tackle their challenges we adopted a multi-faceted approach that leveraged pricing analytics and focused on integrating the five core pricing competencies- strategy, execution, governance, analytics, and technology. All of which are essential for capturing the full value of a pricing analytics investment.

Phase 1

The first phase of this engagement revolved around interpreting the point of sale (POS) data which was analyzed across four business indicators namely- weekly product prices, markdown dollars, product TDP, and sales volume. This holistic approach to understanding the factors driving sales and pricing helped the client to gain meaningful and actionable insights.

Phase 2

The second phase of this pricing analytics engagement focused on analyzing historic data to gauge the impact of seasonality and promotional sensitivities at the product level, which were later incorporated into the pricing analytics model.

Phase 3

The final phase of this pricing analytics engagement focused on devising and implementing suitable pricing analytics models to improve promotional cadence and pricing sensitivity. 


The deployment of a robust pricing analytics framework helped the retailer to achieve over 15% improvement in their pricing and promotion investments while driving sales by 20%. The client also witnessed a 30% reduction in the price compliance effort amounting to a significant OPEX saving.

Gain complimentary access to our analytics platform to see for yourself how advanced pricing analytics models and statistical techniques can help you make better pricing decisions. Request for a free demo now.

Why Choose Quantzig as Your Next Pricing Analytics Solutions Provider?

Quantzig is well-known for offering advanced pricing analytics solutions that can be customized to tackle the challenges faced by businesses from across industries. Our analytics experts not only offer a rich mix of fact-based, predictive statistical insights but offer unprecedented clarity by connecting those insights to the current market scenario. This empowers businesses to analyze various pricing trends and devise suitable pricing strategies to thwart competitive threats and challenging market conditions.

Quantzig’s advanced pricing analytics solutions empower companies to answer critical questions such as:

  • What are the right price points to maximize sales?
  • What price thresholds and price gaps pose the most risk to my sales and brand position?
  • How should I price against specific consumer segments and create price tiers to optimize sales in specific market segments?

Pricing decisions are crucial as they impact virtually every department within an organization. Our advanced pricing analytics solutions can help you understand the impact of pricing decisions and make more informed and forward-looking decisions that drive sales and profitability. Request for more information to know more about Quantzig’s pricing analytics solutions.

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