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Price and Trade Promotion Optimization

CPG firms spend heavily on trade promotions and constantly look to optimize spend across these activities. Typically, there are discounts associated with these promotions prompting decision-makers to ask - what kind of impact does this price discounting have on a brand’s price elasticity? How are the new entrants in the category impacting your sales? Our Price & Trade Promotion Optimization analysis helps firms answer these questions and get a detailed understanding of the category.

Our Approach

We enable clients understand price and promotion dynamics at the retailer level. Simultaneous models are built for each SKU in specific categories to estimate own price and cross price elasticities. These models are then used to develop a Pricing Optimizer and Promotion calendar to enable better planning and execution of promotional programs.
Techniques used

Linear &
Non-Linear Programming

Multivariate Regression

Possible outcomes with Price & Trade Promotion Optimization

Increased sales

Tap into insights from the model to prepare a competitive pricing strategy that can accelerate product sales across regions

Better promotions

Optimize the promotional calendar to manage all activities and resources within the budgets and enhance brand outreach

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