| Optimize Regular Pricing Strategies
ACNielsen Modeling & Analytics provides pricing advisory services that range from strategic price planning to tactical price implementation. Both manufacturers and retailers benefit from a better understanding of the pricing environment, measuring the relationship between price and volume, and determining the importance of absolute price versus competitive price positioning.
Key Questions Addressed
- How do changes in price, either increases or decreases, have an impact on volume and profit?
- What items offer the greatest opportunity to adjust pricing?
- Are consumers more sensitive to absolute price or price gap versus key competitors?
- Do critical price thresholds exist that create a jump in the traditional elasticity curve?
- Which accounts and consumers react most to price changes? Are there important account-level differences in price elasticity?
Target Audience
Regular Price Solutions provide benefits across the entire sales and marketing organization:
- Senior management: Evaluation of corporate pricing strategy.
- Brand management: Creation and implementation of annual brand plans.
- Sales and category management: Execution of key retailer pricing programs that tie to annual goals.
Key Features
Clients trust advice from ACNielsen to make pricing and promotion decisions that affect billions of dollars in revenue:
- “Target Item” effects quantify the impact of the item’s price on sales.
- Competitive interactions capture the importance of competitive pricing and price gaps.
- Price simulation software enables fact-based decision making by the sales and marketing organizations.
- Account level models support sales-force pricing recommendations for key accounts.
Project Content
Regular Price Solutions include the following deliverables:
- Price Elasticity—Explains the relationship between change in price and change in volume.
- Pricing Environment—Provides a solid understanding of the distribution of price within a defined geography over a period of time.
- Sales Rate by Price Point—Provides an in-depth look at the pricing environment and the relationship between price point and sales rate.
- Sales Rate by Price Gap—Explains the relationship between price gap and sales rate, including the distribution of price gap observed in the marketplace.
- Price Simulation Software—Allows “what if” analysis and the ability to develop and compare alternative price scenarios.
- Available across all geographies ranging from Total U.S. to Account Level.
Delivery Options
The initial delivery of all Regular Price Solutions is summarized in an advisory presentation prepared by an experienced Modeling & Analytics specialist. Analyses are accompanied by professional consultation and recommendations, Microsoft-centric output in Excel and PowerPoint, and simulation tools.
You can trust ACNielsen Modeling & Analytics to provide exceptional business recommendations and pricing principles based on careful data analysis and microeconomic theory. We use state-of-the-art methods to drive results across the full range of items and geographies our clients manage:
- Describe the pricing environment
- Measure shelf-price elasticity
- Quantify competitive cross-elasticities
- Accommodate the effects of seasonality
- Control for differences between promoted and non-promoted weeks
Regular Price Solutions are often accompanied by Promotion Solutions to provide a complete picture of the pricing and promotion environment. Coupled with PricePro Simulator, our electronic delivery tool designed to conduct “What if?” analyses, clients have the ability to understand historical execution at retail, make decisions regarding future plans, and evaluate results. What VNU Data Types and Sources Can Be Integrated with this Offering?
ACNielsen Scantrack
Homescan
Spectra
TDLinx
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