Case
studies

Increase
market share
Recommendation
engine

Increase market share using price
and product size optimization

Set Up

  • FMCG Industry
  • Price elasticity
  • Market share maximization
  • Nielsen data
  • 8 distribution channels

Business Task

Pricing Strategy

Our client operates in a price-sensitive market segment. Recent attempts to gain additional market share by lowering prices and running frequent promotions haven't yielded the expected results. They asked us if we could help them by proposing a pricing strategy that would maximize their market share. Toward this end, they provided us with two years of Nielsen retail sales data for eight distributions channels.

Challenges

A seasonal and dynamic market

  • Seasonal peaks during the calendar year
  • Missing data on shelf positions and presence in marketing flyers
  • Purchase of goods during promitions has an impact on later sales
  • Competitor's actions impact sales

Business impact

Following our recommendations led to an increased market share

Our approach & Solution

Optimal price

We developed a proprietary non-parametric model based on the piecewise polynomial method. This model, in combination with business logic rules, recommends an optimal price, where any deviation from this price would result in reduced market share.

Outcome

  • A price and procut size strategy
  • Analysis of competitors' pricing
  • Optimization of promotions

Contact us for more information about our work

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We Support

  • Sponsoring the education of those with less fortunate backgrounds through the CEDA project in Uganda
  • Lecturing through the Credit Risk in Banking course at Charles University in Prague
  • Supervising university students in their academic research

Contact us

Taran
Email: info@taran.ai
Phone: +420 724 224 127 (Europe), +65 9052 1518 (Singapore)
WhatsApp: +420 607 209 443

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  • Taran Advisory PTE. LTD., RN: 201902470R, 9 Raffles Place, Republic Plaza, #06-01, Singapore 048619
  • Taran Advisory s.r.o., IČ: 06935770, DIČ: CZ06935770, Na Perštýně 342/1, Staré Město, 110 00 Praha 1, sp.zn. C 291639 vedená u Městského soudu v Praze.