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.
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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.
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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.
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.
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%.
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