Increase market share | Case studies | Taran - Advanced Data Analytics & Architecture

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

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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
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