Client
Colgate
Background
Exploring pricing thresholds in promo campaigns
The business objective of the project was to maximize the promo response, promo effectiveness and promo timings for a leading brand in oral care. Our job was to do an analysis of regular and promo pricing in leading retail outlets to suggest the right approach to promo planning in the most profitable channels to maximize volume and value for most sellable SKUs and benchmark those to the most aggressive competitive SKUs.
Outcome
Optimal regular price thresholds analyzed with a reco on acceptable range considering high anticipated inflation rates
Optimal promo price thresholds analyzed with a reco of promo discount depth and promo duration to achieve maximum sales
Elasticity analysis done for regular and promo pricing in value and volume with specific inflation and nominal price change
Analysis of optimal promo timing, duration and promo breaks is executed by channels and by SKU
Analysis of the optimal promo assortment and price indexes of own portfolio vs. competitive portfolio is cascaded to cross-functional teams
