Maximizing Revenue with Optimized Pricing Strategy

Presented by RSB Insights & Analytics

Challenge

Leading alcohol beverage manufacturer was battling increased raw material costs and taxes.

RSB was approached to recommend a pricing strategy that could help the client increase prices while minimizing share loss across two key markets.

Proprietary solution

• Econometric Modeling: using time series modeling, focus was on volume forecast and uncovering interactions across the brands.
• Conjoint Analysis: to measure brand price elasticities & estimate change in revenue & volumes with increased future prices.

Volumes from the modeling were integrated with Conjoint to measure future price increase impact.

Result

• Volume Prediction: Integrating conjoint findings with modeling output enabled predictive market shares & volumes calculations.
• Increased revenue: RSB recommended pricing options leading to gains in both sales volume & revenue.
• Market level deployment of Pricing: After alignment with the senior leadership team, the client executed recommended pricing strategy in 2023 leading to positive revenue impact.

About this project

Business issue:

• Defend price premium
• Defend sales, volume
• Defend market share

Market research specialties

• Forecasting & Predictive Analytics
• Market Simulation
• Conjoint Analysis / Trade-off/Choice Modeling

Presented by:

RSB Insights & Analytics

We specialize in delivering creative insights and extensive data analytics to help businesses make impactful decisions.