Pricing
&
Promotional Strategies

Many companies leave the subject of pricing off the hook, but it is an area where retailers can maximise their profits. Pricing strategies are models used to set up the best prices of products. Analytics helps companies with their pricing and promotional strategies in order to boost sales.

As a retail firm, effective trade promotions lead to increased profits and studies have even showed that, most companies discount and promotional spends are higher than their advertising budget.However, most companies suffer losses from the discounts and promotions they create. This is as a result of firms not taking advantage of analytics in the area of pricing and promotions. Over two-thirds of the trade promotions that take place in the US each year fail to make a profit, according to Nielsen.

Companies that get it right with pricing and promotion strategies have leveraged analytics of some sought. Companies that do guess works with discounts and promotions always end up losing lots of thousands and millions of dollars.

The strategies we use

Price Elasticity –  We use the sensitivity of quantity demanded in relation to changes in prices.

Differential Pricing- setting different prices for different customer segments based on customer characteristics, purchasing behavior and patterns, demand and competition.

Price Pack Architecture – using data analytics, consumer insights, and competitive dynamics to create the optimal prices to maximise profitability, drive up market share, test and experiment prices of different weights of products while increasing brand loyalty.

Discover how price analytics will help you overcome pricing challenges and Contact us, to discuss your needs and how we can help you increase your revenue.

Why you need to adopt pricing analysis

Pricing analysis help answer the following questions:

• What price should we set our goods to have a larger share of the market while maximizing profits?
• Are we offering a lower or higher discount than the general market?
• How can we structure promotions differently the following quarter/year to reap the maximum profit?
• Do we respond to changes in the market quickly enough to generate sales?
• How effective have the promotions we have ran turn out?

 With Price analytics, our clients are able to:

• Gain an advantage over their competitors by setting prices, discounts and promotions in a manner that will give you a competitive edge.
• Increase sales and advertise the right products at the right time.
• Gain better customer insights by identifying how customers respond to prices of products.
• Make extra profit by tweaking price misalignment.     
• Attract a larger share of the market by optimizing prices.
• Execute promotions tactfully to make the most it. With analytics, our clients can predict in real time the optimal prices to set during promotions