Price Point Optimization: How Quantzig Helped a Consumer Packaged Goods Firm Develop an Effective Pricing Strategy
When price becomes the primary concern for the customers, it becomes extremely exhaustive for the organizations to mark the beginning of the journey. In fact, in this decade of stagnant wages, the current generation is witnessing slow consumer spending to encounter the slowing GDP growth and currency weakness. On the contrary, with the changing customer […]READ MORE >>
When price becomes the primary concern for the customers, it becomes extremely exhaustive for the organizations to mark the beginning of the journey. In fact, in this decade of stagnant wages, the current generation is witnessing slow consumer spending to encounter the slowing GDP growth and currency weakness. On the contrary, with the changing customer needs and habits, a majority of the consumer packaged goods (CPG) retailers are facing the need for a price optimization model to relatively encourage mass-market shopping activity. Price optimization techniques help companies in the consumer packed goods space to effectively calculate the demand-supply gap and recommend effective pricing strategies to improve profits. Moreover, the adoption of price optimization solutions is further encouraged to tailor pricing points for customer segments by understanding the reaction of customers to the frequent price changes. Leveraging price optimization in the consumer packaged goods space helps leading firms forecast demand, develop robust pricing and promotion strategies, and improve inventory levels.
To understand the pricing strategy and improve customer satisfaction levels, renowned companies in the consumer packaged goods space are approaching companies like Quantzig. As the economic slowdown continues, Quantzig’s price optimization solution helps companies in the retail industry obtain their profitability levels while retaining their most profitable customers.
The Business Challenge
A renowned consumer packaged goods firm with a considerable number of manufacturing units spread across the globe was facing certain predicaments reducing costs and increasing the speed to market for products. With the help of price optimization techniques, the consumer packaged goods firm wanted to streamline their marketing costs and improve the quality of their products. Also, the consumer packaged goods client wanted to address customer concerns related to the customer’s changing preferences and improve the overall customer satisfaction in the consumer packaged goods space.
The primary objective of the price optimization engagement was to optimize brand loyalty and make faster and empowered business decisions.
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Benefits of the Price Optimization Solution
With the help of Quantzig’s price optimization solution, the consumer packaged goods manufacturer was able to identify the most promising opportunities and adjust their operating models to remain competitive in the market. Moreover, the price optimization engagement helped the consumer packaged goods firm devise new marketing campaigns and streamline their overall workflow efficiency. Also, with the use of innovative technologies, the consumer packaged foods client was able to launch new products and evenly allocate the resources based on customer requirements.
Price Optimization Solution Predictive Insights:
- Devised an effective pricing strategy and improved customer retention levels by 20% in the consumer packaged goods space
- Identified customer segments with higher probability of attrition and made promising retention strategy
- Understood the market competition and integrated models to predict volume and price
- Developed demand models and enabled a better pricing strategy
- Maintained the same level of profitability and streamlined their marketing process
Want to know more about price optimization for consumer packaged goods?
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