Tag: Pricing analytics

Optimizing Pricing Strategy: How Quantzig’s Pricing Analytics Solution Helped an Online Electronics Retailer Understand Competitors’ Pricing Strategy

Over the years, pricing has become a major concern for organizations, especially in the retail landscape. With the relentless growth of technology, the customers of today are more informed and are relying on online retailing to ease their experience.To go on par with customer altering preferences and to meet the right target customers, leading organizations in the retailing landscape are leveraging pricing analytics solutions. Pricing analytics solutions help businesses assess customers’ behavior, preferences, and information and accordingly set pricing standards for the customers. Moreover, pricing analytics helps executives to identify both internal and external factors affecting profitability at the granular level. In the retailing landscape, pricing analytics solutions improve profitability and market shares by defining optimal prices and pricing strategies. Organizations can estimate the impact of pricing on sales volume and understand the impact of price differentials on the market share.

Quantzig’s pricing analytics solution assists the client to effectively estimate price-change triggers based on customer behavior, in turn, maximizing revenue and profitability. Also, the client can predict the bid prices based on historical data and position products against the competitors. The price analytics solution also helps the client assess the pricing patterns based on geography; thereby, maximizing returns on investments.

The Business ChallengeQZ_DEMO

Like all other retailers in the electronic industry, a leading online electronic retailer was experiencing a decline in their market shares. To increase shares and customer base, the client wanted to optimize the prevailing pricing strategy and understand competitors’ strategies to effectively retain their respective position in the market.

The primary objective of the client was to understand the pricing strategy of the competitors on their varied product segments and devise an effective pricing analytics solution to better position their products across the niche market segments. The client wanted to identify the potential market segments, enhance their offerings, and devise effective pricing strategies.

Our Approach

To optimize pricing strategies and tap potential market segments, the client approached Quantzig’s team of pricing analytics experts. Quantzig’s team of pricing analytics experts carried out extensive research comprising of interviews and discussions with leading stakeholders in the online electronic retailer landscape. The team of experts further created a dashboard compiling information from various proprietary and secondary sources.

Pricing strategy

Want to learn more about our analytical methodologies?

QZ_RFP

Pricing Analytics Solution Benefits:

  • Better understand the customers and design more targeted and profitable pricing strategies
  • Understand the pricing and customer’s sensitivity to the changing set of prices
  • Retain customers by increasing profit margins
  • Identify customer segments with a high probability of cancellation and prepare an effective action plan to retain these clients
  • Improve retention levels by maintaining the same level of profitability

Pricing Analytics Solution Predictive insights:

  • Identify the customers and pricing opportunities in the online electronics retail market
  • Closely monitor the market and anticipate the impact of price change
  • Leverage the use of predictive models to predict the fluctuations in the prices
  • Devise a robust price optimization model comprising cost models and competitive management analysis
  • Offer relevant additional products, services, or content offerings on the personal data

Want to know more about pricing analytics solution?

QZ CTA

Related Articles:

customer profitability analysis

Why it’s Time to Adopt Pricing Analytics

A modern-day consumer has multiple options to choose from the competitive market. Innovations brought about by a brand is being easily imitated, and the level of product differentiation is declining. Companies these days are battling out on the price front with competitive pricing, seasonal discounts, promotional coupons, and flexible financing. However, competing on the price directly affects the revenue, so companies should look at different avenues to maximize revenues from pricing.

Organizations have a large repository of data available to them including historical price and sales figure, price and demand fluctuations, seasonal demands, consumption patterns, and price sensitivity data. The problem arises when companies do not have the necessary time, resources, or expertise to materialize the data into strategic decisions. Pricing analytics assists the company in making effective pricing decisions to increase the profit margin; thus, contributing to the ROI.Ask An Analyst

Optimal Attainable Pricing

With the help of historical data, price sensitivity data, and consumer behavior data the price point of each product could be dynamically set to attain the best price possible. Budget airlines have been using pricing analytics and big data analytics to increase the revenue from each passenger by dynamically changing ticket prices every minute. For instance, the analytics tool can identify that historically there has been a surge in the demand on a particular date, and increase the ticket prices accordingly. When the seat remains unsold, the tool will automatically analyze the demand and reduce ticket prices to ensure sales.

Promotional Planning

Companies can get valuable insights on their historical promotional efficiency and make adjustments to their new promotional campaigns. Pricing analytics tools are so complex that it can test out the effect of promotions on the demand on a smaller scale. Then, by running the predictive analytics tools, it can automatically provide promotional offers for a price-sensitive segment and roll out premium promotions for value-seeking customers.

New Product Pricing

The problem with new product pricing is that if the product price is too high, it won’t sell and if the price is too low, companies lose out on revenue opportunities. Companies rely on traditional methods of pricing by taking into consideration prices of similar products and pricing it lower than those products. Using pricing analytics, companies can set the best price point for the new product in order to maximize revenues and employ a better price skimming strategy.

For expert advice on implementation of pricing analytics:

Ask An Analyst

Related Articles:

Customer data management

Pricing Analytics Helps a Beverage Manufacturer Identify Pricing Improvement Opportunities

Over the years, the consumption of beverages has sneaked through conventional beliefs and has become a part of the daily course with a considerable number of people consuming it as an aperitif. The changing preferences of consumers have brought in a new dimension to the beverages industry with drinks being served across a majority of the restaurants. With the beverages market nearing its saturation, manufacturers have started relying on pricing analytics solutions to improve profitability and market share by augmenting prices and pricing strategies. Also, leading brewers are leveraging the use of analytics solutions to understand customers’ buying decisions and integrating the knowledge to meet the pricing needs of their consumers. In the beverages landscape, pricing analytics can help organizations to understand both the internal and external factors affecting profitability at the granular level.

To gain actionable insights, the client approached Quantzig’s pricing analytics experts. Quantzig’s pricing solution helps the client gain insights on the type of customers to focus, the products to rationalize, and how to effectively leverage the use of automation tools to make informed business decisions. The solution also helped the client gauge the potential impact of pricing change on the demand and profitability.

The Business ChallengeQZ_DEMO

A major global beverage manufacturer with multiple breweries and thousands of employees has a vision to stay ahead of its competitors in the fiercely competitive market. In the multi-brand and multi-SKU environment, product differentiation was low. The client was facing pricing challenges in accurately evaluating the impact of pricing and promotion decisions. Like many many other manufacturers, the client had difficulties identifying the factors that were driving sales. In addition, the client needed the assistance of custom-built pricing tool to develop advanced pricing management capabilities for long-term success.

Our Approach

To gain more insights into the pricing analytics solutions, Quantzig’s team of pricing analytics leveraged the use of a choice-modelling tool to assess the effect of pricing and promotion decisions across multiple products. Also, the tool was capable of evaluating pricing actions down to the SKU-level. The robust model helped the client forecast volume and margin for the price, product, and brand combinations of interest. The team also developed an overarching strategic pricing framework to assess the impact of seasonality, advertising, customer preferences, and shelf location to generate consistent accurate results.

pricing analy

Want to learn more about our analytical methodologies?

QZ_RFP

Pricing Analytics Solution Benefits

  • Uncover both short-and long-term pricing improvement opportunities
  • Positively change store trajectory and stabilize sales and margin
  • Forecast demand for different pricing and promotion strategies
  • Regulate inventory levels and improve customer satisfaction
  • Design a robust price optimization model to recommend prices, thereby improving profits

Pricing Analytics Solution Predictive Insights

  • Assess the difference between their products and competitor products
  • Determine optimal price gaps with respect to competitor products
  • Generate desired sales volume by compromising on the trade budget
  • Identify the impact that discounted prices have on the sales to the end customer

    Want to know more about pricing analytics solution?

    QZ CTA

Related Articles:

Pricing Analytics Study Helps a Food and Beverage Company Build a Strategic Pricing Framework

With rapidly changing tastes and preferences of the consumers, the food and beverage companies are focusing on innovations to shift towards a health conscious and customer-centric environment. To sustain themselves in the competitive environment, it is necessary for food and beverage retailers to understand their customers more than their competition. Companies in this market space are augmenting the adoption of automation, intelligence, anddemo advanced analytics to drive better business performance and competition in the market. The use of pricing analytics also helps the companies identify the target customers and surface customer insights into the products that are aligned with their cultural identity. Consequently, companies in the food and beverage industry also leverage the use of analytics to understand the efficacy of marketing.

Quantzig’s pricing analytics solution helps the client’s cope with the pressures of competition and consumer price sensitivity. In addition, pricing analytics also helps the client increase customer loyalty and improve the pricing performance of the organization.

The Business Challenge

A global conglomerate was facing challenges understanding the landscape, consumer preferences, and competitors in the retail space. The client also wanted to overhaul its revenue management and pricing capabilities to enhance its position in the global retail landscape. The client was also facing challenges understanding the retail landscape in terms of fluctuations in commodity prices and competitors price shifts.

Our Methodology

To understand the pricing methodology, Quantzig’s team of experts collated information obtained from various sources and created a robust framework to leverage these assets. The team further developed an overarching strategic pricing framework and integrated technology and processes to operationalize the framework across the enterprise.

pricing analytics

Want to learn more about our analytical methodologies?

get in touch

Pricing Analytics Solutions Benefits

  • Develop a demand mode, which is capable of predicting volume changes
  • Analyze the demand for each brand to determine the consumers’ sensitivity
  • Deploy an optimization model to determine the pricing actions
  • Enable proactive pricing decisions based on the pricing changes

Pricing Analytics Solutions Predictive Insights

  • Improve the results of the company through advanced analytics
  • Improve profitability and increase the overall sales volume
  • Understand value potential and achieve an advantage in revenue management
  • Leverage the relative price points for each brand in the portfolio

    Want to know more about pricing analytics solutions?

    demo

Related Article:

 

CUSTOMER JOURNEY ANALYTICS

Pricing Analytics for a Global Retailer Helps Improve Product Pricing

Gone are the days of loyalty and preference for a particular brand. In the world of seamless connectivity, customers are looking for convenience, promotions, and price flows at every point of shopping. With a variety of products manifested in the form of choices, customers expectation has gone beyond the boundaries and are forcing retailersdemo to bring additional focus on channel expansion. Moreover, fierce competition, evolving consumer preferences, and evolving retail landscape are necessitating the demand for the robust expansion of the retail landscape. To combat the aforementioned challenges, retailers are adopting pricing analytics to bolster the value and impact of product pricing and to improve their pricing strategies.

Quantzig’s pricing analytics solution helps the client cope with the pressures of competition and consumer price sensitivity. In addition, pricing analytics also helps the client increase customer loyalty and improve the pricing performance of the organization.

The Business Challenge

A global retailer was facing challenges retaining the price of its products, owing to the fluctuations in commodity prices, competitors price shifts, and the pressure applied by its retail partners. Furthermore, the client was also facing challenges understanding the pricing architecture across products and channels. The scope of this pricing analytics engagement was to help the client solve its pricing challenges and achieve a competitive advantage over its counterparts.

Our Approach

Quantzig’s team of pricing analytics experts analyzed the information to understand its current pricing capabilities and develop an overarching strategic pricing framework. To gain an in-depth understanding of product pricing, Quantzig’s team also developed a demand model to predict the changes in the price of any products. Also, the industry experts further collated information from various sources to analyze the demand for each brand and identify customers sensitivity to price shifts.

pricing analytics for a retailer

Want to learn more about our analytical methodologies?

get in touch

Pricing Analytics Solutions Benefits

  • Improved profitability while increasing overall sales
  • The pricing framework also improved the overall prize for the value chain
  • Develop a demand model to predict the fluctuation in prices
  • Improved demand forecasting, inventory management, logistics, and tighter process controls

Pricing Analytics Solutions Predictive Insights

  • Measure internal and external influences on risk and revenue, price elasticity, and provide optimized results
  • Optimize pricing at the national, region or zone level
  • Forecast and compare the impact on sales, margin, and profit
  • Build customer loyalty, optimize category assortments, segment pricing strategies

    Want to know more about our web analytics solutions?

    demo

Related Articles:

 

predictive analytics

Top 3 Ways in Which Pricing Analytics Can Enhance Your Business

Analytics is the buzz word. Be it data analytics, predictive analytics, social media analytics, or healthcare analytics. Yet the fact remains that often businesses fail to utilize the inputs of these analytics in an effective manner, mainly because they lack the right insight and tactics to utilize the inputs. This situation is much more common in case of pricing analytics. Pricing consultants often struggle with situations which can be easily managed if the data derived from the pricing analytics is employed intelligently.

Pricing analytics and why it matters?

Any business can boost its profit margins by almost 7% by adopting price management initiatives. Pricing analytics facilitate in better determination of the customer profitability and pricing strategy thereby acting both as a catalyst as well as a fruitful metric with which business strategy can be built. The insight provided by the analytics at the granular level enables executives to get a clear picture on both the internal as well as external factors affecting the sales performance of the company.

But due to a very weak foundation in analytics several companies are unable to work through their complex channels, product portfolios, and gain advantage of pricing analytics.

Pricing Analytics: Enhancing Business

1. Knowing your customer

Knowing your customer is the starting point of pricing strategy. But year after year so many companies fail in this process. The diagnostic tools in the pricing analytics can help companies improve their overall performance by easily identifying the customer segment and aligning the pricing strategy accordingly.

2. Planning prices, discounts, and promotions

For any company, planning the prices and launch of promotions is quite critical. Predictive models provide a perspective of the past based on which it gets a lot easier to draft promotion strategies and launch campaigns. Such models backed with pricing analytics hold a candle to what are the strategies one must refrain from product launches and revamp of the entire product line.

3. Identifying the appropriate pricing opportunities

There are many occasions when the companies fail to make most of the “low hanging fruits” of their investments. Pricing analytics tools uncover all these hidden aspects and help the company get ‘quick gains’ in a very short period of time by considering the opportunities and overcoming inherent challenges.

To know more about pricing analytics

get in touch

 

Pricing Analytics Offers a 360-Degree View of Sales to Optimize Price Points

Quantzig’s latest study on pricing analytics for a leading pharma retailer in Europe offers better prediction of the cost of new contracts.

Price trends in the pharmaceutical industry

With the development of new medical technology and multi-channel business environment, the need for pricing analytics in the pharmaceutical industry is gaining immense importance. To build an effective pricing strategy for product launches, pharma companies are trying to understand their end-users and current market conditions before setting an optimal launch price. The introduction of pricing tools that offers holistic insights on the competitors, product value, payer strategies, and customers’ willingness to pay will help companies to choose the correct price ranges. The adoption of these practices helps organizations to focus on prioritizing products that have high demand in the market, offer discounts, and analyze customer feedback to increase the products’ effectiveness. Quantzig’s pricing analytics solutions identify the value drivers for products in the same segment and understand how it was perceived to recommend the optimal price. Moreover, these strategies are designed to provide a 360-degree view of the client’s sales to optimize price points.

The implementation of Big Data analytics is a new way forward in determining the optimal pricing of any products. By analyzing historical data, pharma manufacturers can make important business decisions after thoroughly examining data from both external and internal sources. These data analysis tools are aimed to provide an overview of the developing segmentation strategies, pricing, and profit drivers, making the best use of price, and test driving scenarios.

Digital collaborations

Leading pharmaceutical companies are collaborating with tech giants to develop innovative technologies that will change the healthcare market. The technological developments are primarily driven to accelerate supercharge research and development and pharmacovigilance. Such innovations will increase the price fluctuations in the market and increase the demand for pricing analytics. Healthcare initiatives that promote research in genomics, adoption of robotics, and improvements in biosimilars will encourage vendors to launch their products in competitive pricing to expand their market share.

get in touch

Adoption of med-tech

The pharmaceutical manufacturers are focused on developing rounded products to support applications including monitoring, diagnostics, and compliance. The implementation of Big Data, AI, and cloud technologies to support the supply chains, prescribe actions autonomously, and predict outcomes will offer great ROI for suppliers. The development of med-tech will boost the requirements for pricing analytics in the pharma industry.

Outcomes and solutions offered

Quantzig’s pricing analytics team offered solutions such as robust pricing strategy, mechanisms to track and monitor, and manage the price points for a leading pharma retailer in Europe. Some of the solutions offered are as follows:

  • Assessed customer data, sales data, product data, pricing data, and social media data from varied sources to identify business challenges
  • Delivered a price point optimization for service contracts and better prediction of the cost of new contracts
  • Tracked the effect of discounts on sales and the performance trends for top products online
  • Analyzed sales sensitivity of each product based on unit discount
  • Developed pricing strategy based on comparable products from different brands online

The complete case study on pricing analytics for the pharmaceutical industry is now available.

demo

Recent case studies that might interest you:

For any queries, reach us at – hello@quantzig.com

Pricing Analytics for the Pharmaceutical Industry

In the pharmaceutical industry, clinicians, KOLs, payers, and patients play a crucial role in building effective pricing strategy for new products. The pharma companies need a strong understanding of their customers and current market conditions before setting an optimal launch price. The implementation of pricing analytics tool offers holistic insights on the product value, competitors, payer strategies, and customers’ willingness to pay.

One of the major challenges that pricing managers in the pharma industry deal with is getting all the internal stakeholders to agree on the pricing strategy. With pricing analytics, this is tackled as the assessment is a robust way of analyzing data. Quantzig’s pricing analytics assessment identifies the value drivers for products in the same segment and understands how it was perceived to recommend the optimal price. It also offers a solution to get a 360-degree view of the client’s sales to optimize price points.

The Business Challenge

A leading pharma retailer in Europe was facing challenges in setting prices for its products. The client lacked a robust pricing strategy, and mechanisms to track, monitor and manage the prices across different websites in different geographies. They wanted Quantzig’s pricing analytics assessment team to benchmark prices of existing retail products across various categories – personal care, beauty, household, grocery – against competitor products in the same categories in the market and identify which products would form the key price benchmarks.

Our Approach

By assessing sales data, customer feedback, product data, pricing data, and social media data, Quantzig’s analytics team analyzed the business problem. The team captured price adjustments from different websites and systems for consolidation and aggregation to perform price optimization on client’s various products.

pricing

Want to learn more about our analytical methodologies?

get in touch

Pricing Analytics Assessment Benefits

  • Shared real-time visibility of product prices, market share, and discounts
  • Created analytical capability to monitor and benchmark prices across geographies
  • Benchmarked product prices against competitor offerings to gain insights into industry standard pricing
  • Analyzed online data for 1000+ price points across the client’s business product portfolio

demo

Pricing Analytics Predictive Insights

  • Tracked the effect of discounts on sales and the performance trends for top products online
  • Analyzed sales sensitivity of each product based on unit discount
  • Developed pricing strategy based on comparable products from different brands online
  • Analyzed social chatter about products prices and performance
  • Forecasted sales for the client’s products based on current prices

Want to know more about pricing analytics solutions?

demo

Related Articles:

Trade Promotions Optimization for a Leading CPG Manufacturer

Trade Promotion Optimization (TPO) is the process of utilizing integrated goals, factoring in promotion and supply constraints, and predictive analytics for precise promotion planning and increasing client loyalty. With declining sales and intense competitive pressure, the manufacturers in the consumer packaged goods (CPG) industry need a reliable trade promotion optimization (TPO) strategy. The existing attempts at TPO lack depth and are primarily based on qualitative information. TPO is one of the key activities for manufacturers in the CPG industry to increase short-term sales of the products.

Quantzig’s trade promotions optimization utilizes data from various promotions, price points, Captureand sales forecasts to offer actionable insights to the client. Our solutions help businesses generate better forecasts to analyze promotion efficiency of their products. Our ability to derive insights into the impact of trade promotions on consumer buying behavior offers a significant competitive advantage to manufacturers in the CPG industry.

The Business Challenge and Quantzig’s Approach

To improve sales and battle competitive pressure, the client, a leading CPG manufacturer in the US approached Quantzig to perform a trade promotions optimization. The client was struggling with promotion planning and execution due to the seasonal nature of their products. The client’s capability to plan promotions lacked depth and was based on qualitative or incomplete information. Volume planning was not linked to realistic promotional outcomes leading to inappropriate inventory levels and reduced profits. As a result, the client needed to develop a solution that could improve the ROI and overall cost savings.

The primary objective of this trade promotions optimization was to develop capabilities for precise promotion planning and increase client loyalty for their products. The team developedCapture a pricing simulations model that could model sales volumes based on different market scenarios that were needed to replace the instinct-based approach of the category management department.

To meet the specific requirements of the CPG manufacturer, the analytics team analyzed various historical sales data, category and product data, pricing data, and shipment data to offer insights on trade promotion optimization strategy. The research team focused on developing a solution that would improve the client’s promotional executions by combining these optimizations with simulations. The team developed effective pricing and promotions strategy and simulated sales based on different scenarios.

An overview of the data used and models applied are given below

Trade promotion2

Business Benefits and Insights

With the objective of improving overall sales and ROI, and to create precise promotion planning to increase client loyalty, the predictive analytics team analyzed promotion efficiencies, based on time of day/month, retailer segments, and region to improve promotion reach and effectiveness and created a promotion plan Trade promotion3options based on levers such as cost, timing, and depth of promotional activities. The trade promotions optimization improved the client’s trade promotion planning process based on accurate volume forecasts and promotional efficiency.

It derived insights about the promotional impact on consumer buying behavior. The client achieved cost savings on packaging destruction costs from seasonal products due to the ability to forecast demand with high accuracy. A better forecast to analyze promotional efficiency helped the client achieve time savings of more than three months in the promotion planning process. The analysts assessed campaign effectiveness based on available data to make dynamic adjustments. The solutions from the trade promotion optimization engagement helped the client generate price simulations and discount offers based on retailer segment and promotional tactics. The team provided the user with accurate baselines and lift coefficients, and the ability to deliver one-off promotion predictions based on numerous pricing scenarios.

The client was able to create an effective promotion planning with the help of trade promotion optimization which helped improve customer loyalty. There was an increase in ROI and improvement in cross-selling and up-selling based on targeted promotions and pricing. The historical sales were broken into base, incremental, and total sales and incremental sales were mapped to the set of individual promotions and campaigns. The solutions helped the client develop an optimized annual plan for strategic promotions based on profit, volume, and revenue.

Want to know more about our analytics and business intelligence solutions?

Capture

Related articles

Retail Supply Chain and Marketing Analytics – Connecting the Dots, Driving Growth

The one industry that is highly unpredictable and prone to disruption is retail. Proponents of this sector strive to wade through intense competition, high customer expectations, manage multiple channels and wide array of product offerings among several other challenges to create a competitive advantage and maintain their market position. To stay abreast of competition and latest trends, retailers must devise strategies based on insights and analytics to understand the business and anticipate customer behavior.

Analytics collects data from various channels used for marketing and combines it to provide a common direction that helps to extract analytical results which deliver actionable insights to drive the firm’s marketing efforts to the fore. It comprises of technologies and processes that assist marketers in ascertaining the success of their marketing efforts, by measuring performance through ROI and effectiveness.

Making Inroads into Retail Supply Chain

Advanced marketing strategies and analytics such as customer analytics can help tone down the anxiety in a significant business area like retail supply chains. Insights derived from historical as well as real-time data can help retailers understand customer behavior and segment them accordingly.

The adage “Customer is the King” is gaining importance in today’s competitive market environment. Increasingly, retailers are tailoring messages and creating a customized experience for the customers, to which the latter are responding in a favorable manner. Personalized marketing encompasses more than just mentioning customer’s name in an email, for example, personalized follow ups and insights derived from previous purchases and point-of-sale terminals can help build customer loyalty. Additionally, firms can use customer data to device practice scalable pricing and understand customer expectation in order to maximize retail ROI. Pricing analytics go hand in hand with personalized marketing so as to create happy consumers and build loyalty.

The sole purpose of analytics and big data is risk management – to foresee and mitigate possible risks, thereby creating significant savings in retail supply chain. With the help of data- external and internal- firms can develop strategies based on insights that help in supplier management, assessing store performance and effectiveness of marketing campaigns and marketing channels.

The Quantzig Approach

We, at Quantzig, track latest developments and innovations in the industry through different sources and methodology, reach out to key stakeholders and marketing experts in order to understand the market scenario. We help clients understand and identify fluctuations in consumer interests and devise insights based marketing tactics and strategies to stay ahead of the competition.

For more information

 Screenshot (111)

Close
Quantzig Logo

Hello there!

Are you interested in Quantzig’s analytics solutions?

Contact us by submitting your details below and we will get in touch with you.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice