BUSINESS CHALLENGE: A retailer wanted to measure the impact of pricing and discounting on sales of brands across several categories to drive growth of their Private Label brands
APPROACH: Developed econometric models to quantify the effect of price changes and discounting on their private label brands and other branded products. Machine learning algorithms were also developed to embed continuous learning from different pricing activities
BUSINESS IMPACT: Retailer gained insight into price sensitivity of their Private Label brands and other branded products across several categories. The insights were used to predict the volume impact of everyday price changes, allocate shelf space to various brands based on price elasticity and also to devise a strategy for price discounting based on seasonality and trends.