Marketing Analytics price models have been used to guide decisions on billions of dollars of product, providing insights into expected volume at new prices, key price points, changing price sensitivity, shelf versus promotional price changes, portfolio pricing, and competitive price matching.
Having pioneered the “Store Group” modeling methodology that has been proven repeatedly in independent academic studies, we are a recognized thought leader in promotion response modeling.
►Include merchandising, competition, macro-economic environment, trend, and seasonality
What is the sales impact of product price changes and competitive pricing?
What is the optimal discount and how does price and promotion response vary by market?
Which promotions work best for different consumer segments?
How often and how intensely to promote?
Promote the whole line or focus on a few key items?
Which promotions have halo effects on non-promoted products?
►Utilize framework from economic theory: product priced optimally when margin = 1 / elasticity
►Not dependent on any model specification – flows mathematically from margin and elasticity
►Examples: In-Store Displays, Newspaper & Pre-Print Features, Coupons, In-Store, Mail/Online Offers, Free Goods/Premiums, Special Packs, Special Events, Discounts