Marketing Analytics Suite:: Price Elasticity Analysis

Price Elasticity Analysis by QDT: Empowering Strategic Pricing Decisions

About the service

Maximize profitability with QDT's precise Price Elasticity Analysis, leveraging advanced ML for strategic pricing insights

  • Data Integration and Preparation

Incorporates both internal and external data, applying transformations to align variables and reduce noise, ensuring a clean dataset ready for analysis.

  • Advanced Machine Learning

Utilizes Quantum ML’s capabilities to forecast sales and analyze price sensitivity, employing techniques like QR decomposition to handle correlated price variables and feature importance analysis to identify key predictors.

  • Elasticity Analysis and Outputs

Generates detailed elasticity curves and tables, providing a granular view of how different price points and time windows affect sales volume. This analysis covers a wide range of products, offering flexibility and depth to the insights provided.

Overview of Methodology

Data Integration for Comprehensive Analysis

QDT's methodology starts with the integration of extensive data sources, both internal and external, into a unified dataset. This step involves sophisticated data preparation techniques to align variables, reduce noise, and ensure the dataset is clean and ready for analysis. By leveraging QDT’s Quantum Data, a vast data lake, businesses gain access to a rich foundation for insightful analysis.

Advanced Machine Learning with Quantum ML

The core of the analysis utilizes Quantum ML, QDT’s automated machine learning platform, to dive deep into forecasting sales volumes and understanding price sensitivity across products. Techniques such as QR decomposition are employed to manage correlated price variables effectively, while feature importance analysis helps pinpoint the key predictors of sales performance, ensuring precise and reliable insights.

Sales Forecasting and Price Sensitivity Analysis

Through the application of sophisticated machine learning models, QDT can accurately forecast future sales and analyze how different pricing strategies impact sales volume. This step is crucial for identifying the optimal price points that balance profitability with market competitiveness, providing a strategic edge in pricing decisions.

Generation of Detailed Elasticity Curves:

The methodology yields detailed elasticity curves and tables, offering a granular view of how various price points and time frames influence sales volume. This comprehensive analysis spans a wide range of products, granting businesses the flexibility to explore different pricing scenarios and understand their potential impact on sales and revenue.

Actionable, Data-Driven Pricing Strategies

The culmination of this process is a set of actionable, data-driven recommendations for pricing adjustments, promotional strategies, and product positioning. By grounding these strategies in deep analytical insights, businesses can make informed decisions that optimize their pricing for maximum revenue and market share, ensuring a competitive advantage in their respective markets

Case Study: Optimizing Pricing Strategy for Major CPG Brand

  • Objectives

    • Measure the impact of pricing in an inflationary environment
    • Identify the optimal price points

  • +7%

    Predicted increase in sales by optimizing pricing across multiple brands

  • -15%

    Decrease in the cost incurred on pricing studies

  • Insights

    A dynamic tool to test/simulate the impact of different price points for volume and gross profit

Additional Services