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Pricing analytics Archives | Quantzig

Tag: Pricing analytics

competitive pricing analysis

Competitive Pricing Analysis for a Food and Beverage Company – A Case Study on How we Helped a Client to Drive Sales by 13%

The client is a leading food and beverage industry player based out of the Netherlands. The F&B manufacturing company wanted to leverage competitive pricing analysis to analyze the pricing strategies adopted by its competitors and deploy suitable pricing analytics models to tackle the pricing challenges currently faced by them.

The Business Challenge

The ever-changing business landscape, growing competition, and changing customer preferences were among the core challenges facing the food and beverage company. To tackle such challenges the client wanted to redesign their competitive pricing strategy and revenue management capability. They approached Quantzig to leverage its competitive pricing analysis solutions to develop and implement a robust pricing strategy to bolster the value and impact of product pricing. Despite being one among the top companies in different product categories, the food and beverage manufacturer was known for making price changes based on market dynamics and price shifts. Using such an approach to price products gave rise to a turbulent pricing structure across products and channels, due to which they failed to unlock the true value of their offerings.

Request a Free proposal to learn how competitive pricing analysis can help you unleash the power of pricing data to make informed pricing decisions and devise tactical solutions to respond to your competitor’s activities.

Although the company had deployed sophisticated pricing analytics models, it lacked the analytics capabilities and holistic competitive pricing analysis framework to analyze those data sets. Also, it’s crucial to note that most of their pricing challenges stemmed from their segmented operational structure, which meant that business units often made pricing decisions independently, sometimes resulting in cannibalization within the portfolio. The company not only looked to solve its pricing challenges but also to achieve a pricing advantage by leveraging competitive pricing analysis to better manage the price of its offerings.

Solution Offered and Value Delivered

Quantzig’s competitive pricing analysis experts adopted a comprehensive three-pronged approach to help the client develop a strategic competitive pricing framework and integrate technology and processes to implement the framework across the enterprise. 

Want more information on competitive pricing analysis? Contact our experts today!

Phase 1

During the first phase of this pricing analytics engagement our analytics experts focused on developing a demand model capable of predicting volume changes across the category.

Phase 2

In the second phase, our competitive pricing analysis experts focused on analyzing the demand for the competitor’s offerings to determine price sensitivity and the impact of price shifts. These findings were then fed into a pricing analytics model to determine the right pricing actions for the company.

Phase 3

The third phase of this competitive pricing analysis engagement we focused on developing a pricing analytics framework. The devised framework helped them improve profitability and increase overall sales volume by 13%.

Our portfolio of competitive pricing analysis solutions empower businesses to compare product prices with ease. Request a FREE demo to know more. 

Competitive Pricing Analysis Enagagement Outcome

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competitor price tracking

Quantzig’s Competitor Price Tracking Solution Helped an E-tailer to Improve Customer Retention and Increase Profit Margins by 39% – A Case Study on the Retail Industry in Netherlands

In a commoditized world, it is really difficult for e-commerce players to distinguish their products from millions of similar products proliferating the marketplace and sold online. Therefore, e-tailers need to come out of the traditional competitor price tracking mechanism to improve customer experience and boost profitability. Leveraging an analytics-based competitor price tracking approach can help companies to remain competitive in the dynamic retail market by helping them gain a clear, detailed competitive data analysis to ensure efficient price monitoring.

Our pricing analytics experts help businesses to make accurate pricing decisions by analyzing a host of factors that impact pricing including sales forecasts, demand, market intel, and reference price points. Talk to them right away.

The client is a Netherlands based online e-commerce company who is well-known for selling fashion apparels and shoes online. The company is evenly distributed geographically and has an annual turnover of more than 12 billion dollars through online sales.

Business Challenge

The client, a leading E-tailer, was looking at leveraging competitor price tracking solutions to track market price trends and competitors’ pricing strategies. This is when the e-tailer approached Quantzig to leverage its competitor price tracking solution to analyze competitors’ prices and  gain in-depth insights into their sales data, product rotation, and historical trends to analyze the impact of their promotions on brand value.

Problem Statement 1:

The client was finding it difficult to understand the best way to manage the price in a highly competitive e-commerce market. They wanted to analyze the promotional actions of competitors to devise better pricing strategies.

Problem Statement 2:

Inability to retain valuable customers was the major cause of the client’s second challenge that resulted in the dip in profit margins.

Problem Statement 3:

Key competitors and new market entrants were acting as barriers for the client when it came to providing better customer experience and as a result, the e-tailer was looking for smart competitor price monitoring methods to improve their customer retention strategies.

Quantzig’s pricing analytics solutions offer a new way to competitor price tracking and analyze the pricing strategies adopted by them to arrive at conclusions that help businesses determine the best suitable pricing approach. Request a FREE proposal now to gain in-depth insights into our analytics solutions.

Solution Offered and Value Delivered

Our pricing analytics experts worked with the client to analyze their core business challenges and devise a robust competitor pricing analysis framework to effectively track competitor pricing strategies over a certain period. We adopted a comprehensive three-phased approach to help the client achieve groundbreaking results by transforming their ability to analyze their competitors and achieve a significant increase in profit margins.

Phase 1:

The first phase of the competitor price tracking engagement focused on the thorough analysis of market trends that helped the experts understand what price customers were willing to pay for products as well as what competitors in the industry were charging.

Phase 2:

The second phase of the competitor price tracking engagement revolved around benchmarking competitors to determine the ideal pricing to successfully launch a product in a competitive market with appropriate pricing.

Phase 3:

In the third phase of the competitor price tracking engagement, the pricing analytics experts focused on developing a customized analytics dashboard to help the client track their competitor’s pricing strategy in real-time. Also, this helped the client to optimize their budget allocations and lead to improved ROI.

Our intuitive, real-time pricing analytics dashboard can help you track key pricing metrics to ensure you adhere to your  business requirements. Request a FREE demo below to know more.

Quantzig’s competitor price tracking solution also helped the client to:

  • Improve customer retention by 2X
  • Increase annual profit margins by 39%
  • Devise better pricing strategies to drive customer loyalty
  • Improve flexibility and customer responsiveness to enhance the brand value

Why Choose Quantzig as Your Next Pricing Analytics Partner?

Quantzig is committed to offering cutting edge pricing analytics solutions to help companies institutionalize data-driven decision making and tackle complex business challenges. Quantzig’s advanced pricing analytics solutions are flexible enough to accommodate the evolution of the solution through dynamic changes in your business. Our pricing analytics team leverages the latest statistical approaches and platforms and delivers it to you through an agile approach that’ll help you accelerate your journey from data to decisions.

To learn more about competitor pricing tracking mechanism, request for more information below

pricing analytics

Analyzing the Role of Pricing Analytics Techniques in Setting an Optimal Launch Price for an Orphan Cardiovascular Drug – A Case Study on the US Pharma Market

The client is a leading pharma industry player who wanted to leverage value-based pricing analytics techniques to devise an optimal pricing strategy for the launch of its orphan cardiovascular drug.

The Business Challenge

In the face of stagnant healthcare budgets, an ever-growing demand for care, advanced pricing analytics techniques have the potential to drive value across the pharma value chain which included companies, payers, patients, and providers in advanced health systems. But to unlock the true potential of pricing analytics techniques, pharma companies must consider the outcome and factors that impact profitability before setting the new launch prices.

To devise an optimal pricing strategy in today’s competitive business scenario, businesses must possess a strong understanding of market dynamism and key value drivers that impact profitability and growth. Without a detailed understanding of such factors, businesses might fail to identify the optimal price for their drugs. Today most pharmaceutical companies struggle when it comes to leveraging pricing analytics techniques to identify the optimal price for their drugs. This, in turn, leads to poor launch performance which might seem quite challenging to overcome especially, in a scenario where sales expectations are higher than ever for new drugs.

Would you like to learn more about our pricing analytics solutions?

While preparing for the release of a new drug in the US market, a leading pharmaceutical company chose to partner with Quantzig to leverage its pricing analytics solutions to develop a robust pricing strategy. Being an orphan drug and the first indicated treatment for a rare cardiovascular condition the client lacked a basic understanding of the factors that impact pricing. They were looking at exploring the potential of pricing analytics techniques to set optimal prices.

The Solution Offered

We adopted a comprehensive three-pronged approach to help the client tackle the above-mentioned challenges. 

Phase 1

The initial phase revolved around conducting in-depth internal and external interviews to understand and analyze the importance of clinical and commercial factors impacting the payers’ decision-making process.

Request FREE proposal to gain in-depth insights on the benefits of our pricing analytics techniques.

Phase 2

The second phase of this engagement focused on analyzing and testing the acceptability of different price points and price structures to establish the key psychological thresholds. Also, by testing several pricing analytics techniques, it was possible to evaluate the impact of a price change on the prescribing behavior of physicians and payer restrictions.

Phase 3

The final step in our pricing analytics engagement focused on developing a pricing roadmap to align the obtained insights with the client’s business objectives keeping in mind the future needs of the business. 

The pricing analytics solutions also enabled the client to:

  • Make strategic and tactical pricing decisions
  • Prioritize three pricing analytics techniques to implement during the drug launch
  • Identified the optimal price that returned maximum revenue

Schedule a FREE demo to learn how a robust pricing analytics strategy can a differentiator in your market.

Benefits of Pricing Analytics

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Price Optimization

3 Ways to Improve Retail Price Optimization Strategy

In today’s competitive business landscape, retailers are looking for new methods to improve their operational efficiency. Retailers struggle to find the right balance between optimizing profits and maintaining traffic. This is where an effective price optimization strategy can help retailers to develop healthy margins and good traffic. However, retail companies tend to struggle when it comes to optimizing their pricing strategies. Challenges such as trying to quickly adapt to new technologies and reprice against behemoths act as an obstruction in devising retail price optimization strategies. In this article, our analytics experts have listed out some of the effective ways to improve price optimization strategy that can help retail companies in better and quick decisions and retain profitable customers.

Quantzig’s pricing analytics solutions help businesses to drive conversions and realize sales opportunities. Request a FREE proposal to gain in-depth insights into our portfolio of pricing analytics solutions.

How to Improve Retail Price Optimization StrategyHow to Improve Retail Price Optimization Strategy?

Evaluate Strengths and Weaknesses

To devise effective price optimization strategy, companies in the retail industry must first take into consideration what effect SKU prices will have on operations and evaluate their organization’s strengths and weaknesses. This strategic approach of initially looking into own strengths and weaknesses is important to get a clear picture of which strategies are to be executed. To evaluate one’s strengths and weaknesses, retailers need to collect historical data, including product volumes, prices and promotions, competitors’ prices, economic conditions, product availability, seasonal conditions, and fixed and variable cost details. Such details can help retailers to clearly outline their company’s strengths and weaknesses. Furthermore, this can help companies to drive both value and self-interest. Also, it initiates the wisdom and clarity of how pricing affects all aspects of operations and has a direct correlation to profits and revenues.

Our pricing analytics experts help companies create optimized pricing, promotion and discounting strategies. Get in touch with them right away!

Don’t Just Size Up the Competition

To improve price optimization strategy, retailers still focus more on the competitors’ pricing strategy. But to truly achieve competitive pricing, retailers must assess the bigger picture, not just their competitors’ prices. Using price optimization metrics, retailers don’t just size up the competition, they size up the competition against their strengths and weaknesses. This helps in creating a list of opportunities and threats in the overall market. Also, it offers detailed insight into competitive data and helps to understand how competitive data is going to affect profits and revenue.

To help businesses sustain themselves in a highly competitive marketplace, we track and monitor competitor pricing in real-time through analytics dashboards. Request a FREE demo to know more.

Define Your Pricing Strategy

After evaluating own strengths and weaknesses, businesses can outline the threats and opportunities based on the competition and market. This can help in defining a clear pricing strategy and can assist in understanding how well the perceived value is suited to the needs and wants of each customer. Furthermore, defining pricing strategy can help businesses to achieve revenue goals, marketing objectives, win target audience, improve brand positioning, and product attributes.

Want to learn more tips on improving your price optimization techniques? Request for more information.

clickstream analytics

Pricing Analytics Solutions: Boosting Profitability with Data in the Retail Industry

Despite recent advancements in technology and decision-support tools, companies in the retail industry are finding that the traditional approaches to devising pricing strategies are not keeping pace. Indeed, the new digital era stemming from pricing analytics and the explosion of omnichannel retailing has meaningfully changed the retail landscape and needs an overhaul of retailers’ pricing strategies and capabilities.

Are you finding it difficult to devise strategic pricing strategies? Our analytics solutions can help. Request a FREE proposal to gain detailed insights into our portfolio of pricing analytics solutions.

Pricing is a crucial driver of growth and neglecting it can affect the profitability of retail businesses remarkably. So, retail companies need to understand and analyze the price point for maximizing profits. This is where pricing analytics can come to the rescue. Companies can get as close to their target as possible, provided they utilize pricing analytics solutions and devise best-suited pricing strategies for their business. In this article, our pricing analytics experts have highlighted a few ways to help retail companies boost profitability, optimize price and discounts, minimize price gaps and benchmark prices against competitor products with the help of pricing analytics solutions.

In a highly competitive retail market driven by digitally empowered customers with paper-thin brand loyalty, and agile online competitors, pricing analytics is the key to stay ahead of the curve.

analyticsTips to Boost Profitability by Leveraging Pricing Analytics Solutions 

Analyze and track your competitor’s pricing strategies

Pricing analytics solutions can help companies in the retail industry to monitor and track competitor pricing in real-time. By leveraging pricing analytics solutions, retail players can also make changes to their pricing strategies by comparing it with that of the competitor’s strategy. This can, further, help them to improve customer retention rate and customer responsiveness. With the help of pricing analytics models, retail companies can proactively respond and immediate responses to the competitors’ marketing strategies.

Our analytics experts employ effective price analysis models to identify price triggers and factors affecting the price of your offerings. Get in touch with an analytics expert to know more.

Track price triggering points

With the increasing competition in the retail environment, today it has become crucial for businesses to track the price triggering points and factors affecting the demand of their products and services. Pricing analytics helps retail companies in developing capabilities to understand the factors triggering the price of a product or service and then tweak their pricing strategies accordingly. The analytics experts at Quantzig believe that the best way to track price triggers is by tracking the purchasing paths of the customers which provide clues to what changes in price need to be made.

To help businesses sustain themselves in a highly competitive marketplace, we track and monitor competitor pricing in real-time through our customized pricing analytics dashboards. Request a FREE demo below to gain better insights.

Understand price elasticity

Pricing analytics solutions can help companies in the retail industry to analyze past transactions and perform price segmentation to identify factors that influence price elasticity. Doing so can help retail companies to calculate the price elasticity for all price segments and select the one that maximizes profit and revenue. Consequently, companies can establish discounting strategies to remain competitive and improve their regional go-to-market strategies as well.

Develop robust pricing modeling capabilities

Disparate data sources, as well as market and category contexts, challenge a company’s analytical maturity. A one-size-fits-all cannot produce analytical rigor. Therefore, retail companies should leverage statistically validated pricing models to gain the desired business outcome. Pricing models  can help retail companies to determine price elasticity, cross-price elasticity, and pricing corridors that can influence sales, direct marketing promotions, and other deals.

Wonder how insights derived from pricing analytics solutions can help you make informed decisions? Request for more information now!

pricing analytics

Pricing Analytics Unearthed New Opportunities to Capture Unrealized Profits for an Automotive Company

The client is an automotive manufacturer with business units spread across North America. They were looking at developing a data-driven pricing strategy to identify new pricing opportunities to drive growth. This success story highlights how the implementation of a data-driven, competitive pricing strategy helped an automotive company to outperform its peers.

The Business Challenge

There is no denying to the fact that the future of the automotive industry is currently at crossroads. In a rapidly growing automotive landscape, the lack of the right tools and expertise in setting the right price may bring in new challenges for players. It’s also crucial to note that businesses must have strong analytics capabilities to develop meaningful insights from their datasets and set the right price for their offerings. Our portfolio of pricing analytics solutions is backed by best-in-class pricing analytics models that aim to address the specific needs of businesses to drive bottom-line results.

Our pricing analytics experts can not only help you leverage data to understand the buying patterns of your customers but can also help you integrate this knowledge to meet your pricing needs.

Since automotive companies face strong competition from international players it’s crucial for them to express the value of their offerings by setting the right price. The client, in this study primarily sold products through distributors and faced several challenges related to pricing, execution, and monitoring. A thorough analysis helped reveal that the client’s challenges were deeply rooted in their pricing strategy and poorly documented processes.

The lack of basic knowledge and pricing analytics expertise proved to be costly and the client soon realized the impact it would have on their organizational performance. Moreover, the growing competitive pressure from low-cost competitors, new entrants, and product commoditization along with the risk of falling into costly ad-hoc pricing habits prompted the client to develop a competitive pricing strategy.

Get in touch with a pricing analytics expert for more insights.

 The Solution Offered and Value Delivered

To help the client identify the optimal price for their products we focused on developing a competitive pricing strategy that aimed to differentiate the client’s offerings. Our experts also conducted a detailed competitor pricing analysis to identify and analyze the patterns in pricing strategies adopted by their competitors. This helped the automotive client to identify over $2M in new pricing opportunities. The competitive pricing strategy also helped them analyze how price fluctuations impacted the overall profitability of the organization.

Quantzig’s pricing analytics solutions also empowered the client to:
• Improve the efficiency and consistency of their pricing policies
• Automate pricing dataflow and develop KPI dashboards using advanced pricing analytics
• Quantify product demand based on pricing

Quantzig’s pricing analytics solutions leverage advanced pricing analytics models and micro-segmentation techniques to help businesses identify new opportunities for improving profits.

What is Pricing Analytics?

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Price Optimization

Price Optimization Case Study: Empowering Businesses to Boost Revenue by Enhancing Pricing Strategies

A leading logistics and transportation services provider based out of Germany approached Quantzig to leverage its expertise in price optimization to address the mounting inaccuracies in their spot market pricing methods and estimations. The implications of their inaccurate pricing strategies resulted in a sharp dip in the revenue generated from the truckload shipment segment in the corresponding spot markets and also led to a rise in the cost of securing capacity.

The Business Challenge

Like any other industrial segment, the logistics and transportation industry is currently witnessing a plethora of changes that have bought in new opportunities. However, the introduction of new technology, business models, and pricing strategies have further complicated the market landscape, making it difficult to sustain a competitive advantage. The client a leading logistics and transportation services provider was looking at leveraging price optimization models to generate price benchmarks to achieve certain business objectives. They were looking at deploying price optimization models that would help them enhance their ability to forecast price fluctuations and devise robust pricing strategies.

The increasing complexity of global supply chains signifies that you should be well aware of your expenses and use price optimization models to better track and control spend. This is where you should be cautious, as adopting a wrong approach to price optimization can leave your organization far short of its savings goals. Contact our price optimization experts to know more.

Solutions Offered and Value Delivered

To help the client tackle their core challenges, the price optimization experts at Quantzig adopted a comprehensive approach that helped them implement better pricing strategies to improve their profits. A detailed analysis helped our experts to delve into the intricacies of the clients’ challenges and understand the perspective of the investors. The solutions offered by our experts enabled them to leverage pricing optimizations models to redesign their pricing strategy. The implementation of new pricing strategies further empowered them to enhance the accuracy of their prediction by 35% and generate predictions for a much broader range of shipments and equipment types.

In addition, the new price optimization strategy enabled the client to view data updates in real time, reducing the error rates and prediction variances. With price predictions consistently closer to the actual negotiated shipment price, the client was able to negotiate prices better aligned to the real market clearing equilibrium price. As a result, the company is now better positioned and well-equipped with robust optimization models to set proper margins, reduce error rates, and improve overall revenue. Moreover, the price optimization solutions and recommendation proved to be effective in bringing down price variances of their shipments by a whopping 46%, leading to the generation of additional revenue.

Want more information on the benefits of price optimization models? Get in Touch right away!

What is price optimization?

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