By E2E Research | July 27, 2021
Research Objective
- The client had limited information about consumer price responsiveness and the extent of competitor price fluctuations. They needed to predict:
- Gain/loss in volume share based on price movements in the category.
- Optimized prices to achieve targeted volume share in the event of competitor price actions.
Scope & Methodology
- The project included building a predictive model to understand interactions among client’s and competitors’ price elasticity. It identified price gaps/thresholds which could result in significant share changes.
- Further, we created a simulator to help identify optimum price bands to operate in given the competitors’ price changes.
Value Delivered
- We proactively identified the maximum price threshold to respond to a List Price Increase
- The tool was extensively used to identify best price strategies in the dynamically changing market.
- The client was able to maintain an optimum price differential against fluctuating competitor pricing.
