Optimisation / Germany / Non-Alcoholic Beverages
Price Optimisation for Non-Alcoholic Beverages
"The simulation and market scenarios powered by Ipsos models enabled the client to adjust prices and predict the outcomes of portfolio price setting in a competitive market."
Business issue
A leading manufacturer in the non-alcoholic beverage market wanted to optimise their portfolio pricing strategy to identify opportunities for overall revenue growth in the competitive market setting.
Specifically, they wanted to assess the competitiveness of their product pricing in relation to both their own portfolio and the competition, and to understand if consumer segments have varying willingness to pay based on packaging formats.
Our solution
Based on a choice experiment, we presented respondents with realistic purchasing scenarios, allowing them to select their preferred products in a realistic setting.
Resulting in a simulation tool that allows to quantify concrete market scenarios, the client could understand price elasticities of demand, simulate the exact effects of pricing scenarios and potential competitor reactions.
Volumetric analyses helped the brand to identify revenue and profit-optimal price points. In addition, understanding price thresholds helped to determine the most effective pricing strategies.
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Impact
The brand saw high accuracy of the predictions of the market simulator tool.
The simulation and market scenarios powered by Ipsos models enabled the client to adjust prices and predict the outcomes of portfolio price setting in a competitive market, whilst also driving their revenue and sales growth.
