Price & Promotion Analysis
Key Elements:
Accurately captures account, geographic, and/or consumer segment differences
Incorporates key price points and competition when determining optimal pricing across wide range of items
Promotional sales lift and ROI for wide variety of industries and event types
Financial analysis considering margins and retail pass-through

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.


Our Approach to Price & Promotion Analysis
How We Do It Key Model Insights
Relate sales to base price and promoted prices.

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?


Identify optimal pricing and lost opportunity for deviating from optimal pricing.

Utilize framework from economic theory: product priced optimally when margin = 1 / elasticity

Not dependent on any model specification – flows mathematically from margin and elasticity

Determine promotional sales lift and ROI for each event.

Examples: In-Store Displays, Newspaper & Pre-Print Features, Coupons, In-Store, Mail/Online Offers, Free Goods/Premiums, Special Packs, Special Events, Discounts


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