Retail industry players are always looking for a sustainable growth strategy to thrive in the ever-competitive global retail marketplace that is always under constant pressure from the online new entrants. Consumers now have plenty of choices and are swift in shifting their loyalty towards a brand hence it impacts the overall profitability of businesses. In such cases, pricing agility is one of the best solutions that can be used to gain a competitive edge over competitors.
A European retail brand faced with pricing issues approached Quantzig to derive the best price elasticity model for their products in the West European market. Quantzig helped this retail brand by implementing an analytics-driven pricing strategy that helped them increase their profit margins and market share.
Wonder how to improve your pricing strategy without disrupting the brand identity and market share? Request a free proposal now.
The client is a French retail brand, headquartered in Croix, France. They are one of Europe’s largest manufacturers, distributors, and sellers of vegan and functional foods.
The client was facing challenges with deriving a price elasticity model of their latest range of products while keeping in mind several factors such as initial markup, the historical and recent brand performance of similar products, inventory moving price, competitors’ pricing, market demand. The major challenges faced by the client were –
Are you facing challenges with deriving a price elasticity model? Speak to our experts today.
- Set business objectives – Gathering and analyzing data on how the market responds to price changes empowers retail businesses to understand how increasing and lowering prices of their products and services will enable them to achieve their business objectives. The client was finding it difficult to gather, analyze and interpret the market data and needed Quantzig’s SMEs to help with the same.
- Ward off-market losses – The client was looking forward to deriving a competitive retail price elasticity model to ward off market losses to their competitors. They collaborated with Quantzig to do a thorough analysis of the price elasticity of demand and supply to respond to every retail buying trend.
- Capitalize dynamic pricing – The client wanted to make the most of an analytics-driven dynamic pricing strategy to increase profit margins.
Request for more information to know how our data-driven price elasticity models can help you to fix pricing misalignments.
Quantzig’s price elasticity experts addressed the client’s concerns by deriving the best-suitedprice elasticity model for their product. The model helped the client draw insights on price recommendations for their products and recognize opportunities to fix price misalignments. As a result of this model, the client was able to make apt decisions on increasing and lowering the prices of their product range. Quantzig’s dynamic pricing model also helped the client gain insights into the pricing strategy of their competitors and identify pricing opportunities which resulted in maximizing their profits
To know more about our pricing analytics solution portfolio request a free pilot now.
Quantzig’s experts helped this retail client increase market share and promoted their product range by adopting a holistic pricing approach. The key business outcomes of this collaboration were –
- Increase in overall sales by 17% over a period of three months
- Creation of the optimum product pricing strategy based on demand, market, and competition
- Savings of over €150,000 which was a result of the analytics-driven pricing strategy