Brands must routinely make multiple pricing and promotion strategy decisions across their portfolio for different products and categories. In order to do this while achieving a positive impact on margins and revenue, they need the ability to determine the influence of pricing and promotion initiatives on sales. Some of the typical questions they must answer are:
- What will be the impact if we were to increase or decrease price?
- Is there a specific price point we should target?
- How should we price against competitors?
- When competitors decrease their price, do we always need to follow suit?
- What is the most appropriate pricing strategy?
- What is the ideal depth of promotions?
- What is the source of volume when our items are promoted?
- Are there opportunities to increase or decrease price promotional frequency?
- How are my promotions impacting competitors?
- How effective are non-price promotions such as free gifts, bundle packs and multi-buy?
Analytic Edge’s Pricing & Promotion Analytics Solution provides the tools to measure price elasticity and the impact of different types of promotions on sales, allowing companies to plan, implement and track appropriate programs and strategies for every category and product.
Key Features & Benefits
- Flexible Pricing Optimization: Provides flexibility to refine pricing strategy for each geography, segment and/or category to ensure optimal pricing across the full portfolio in all channels and geographies. The solution provides insights on price elasticity, price gap elasticity, and threshold prices and gaps.
- ROI-Focused Promotion Optimization: Enables companies to plan and optimize promotional investments to ensure maximum ROI across brands, customers, channels and geographies. Provides actionable insights on price promotion elasticity and non-price promotion elasticity.
- Easy-to-Use and Customizable Tool: Intuitive and easy-to-use tool provides simulations for various pricing and promotion scenarios to ascertain their impact on specific items, brands and the portfolio after taking cross-effects into consideration. The tool simulates the impact of multiple pricing changes on top and bottom-line metrics and can be customized based on specific client requirements.