Price Optimization Tool
Discovered 16% opportunity cases for price optimization and a potential improvement of $250M in revenue
A leading brewery wanted to understand how price change impacted its products and secure price optimization across SKUs and maximize the top line. The pricing team faced the uphill task of designing a unified pricing strategy across 200+ SKUs manufactured worldwide, without causing a negative impact on product sales.
TheMathCompany utilized conjoint analysis survey and discrete choice modeling to determine optimal pricing and distribution of SKUs across geographies.
A conjoint analysis survey was designed & rolled out to sample shoppers, who were presented with different price points on SKUs across the category.
Discrete Choice Modeling was used to simulate customer choice and understand the impact of price changes; a VR platform was leveraged to simulate real experiences, in the context of advertising, pricing, packaging, features, promotion, and other variables to derive the importance of each marketing variable
Impact assessment was carried out to understand effects of price increase on SKU volumes, movement of volumes to other SKUs in the market. Optimal price & distribution architecture was developed across SKUs to maximize the volume / marginal contribution
Design thinking frameworks helped to create outcomes and roadmap (packaging preferences, price sensitivity etc.) for devising a holistic strategy to attain price optimization.
A simulation tool was built to enable decision-makers to visualize the impact and answer various questions on pricing
Unconventional data sources were explored to capture information for economic, demographic indicators (IMF, Worldbank, Survey reports etc.) to forecast volume outlook for countries. A delivery process was setup to scale the solution across 25+ countries with minimal effort duplication
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