most pricing decisions are made at the SKU level, yet analysed at the brand level. BLA propitiatory modeling approach to optimising SKU level pricing allows for strategic decision making.
Global Pricing Study 2016 results with specific insights from the chemicals i...Robin Chu
Three key takeaways from Simon-Kucher's Global Pricing Study 2016:
1. Profits are set to decline, forcing companies to seek new profit opportunities
2. Investing in pricing strategies and support tools pays off
3. Companies are insufficiently prepared to fully tap the potential of digitalization
Global Pricing Study 2016 results with specific insights from the chemicals i...Robin Chu
Three key takeaways from Simon-Kucher's Global Pricing Study 2016:
1. Profits are set to decline, forcing companies to seek new profit opportunities
2. Investing in pricing strategies and support tools pays off
3. Companies are insufficiently prepared to fully tap the potential of digitalization
Model N European Survey: Pricing, Profit & Revenue life-cycle management - Li...Alex Rumble
Pricing and revenue management is centric to an organisation’s profitability.
Processes flow across functional silos, across geographies via multiple technologies creating disconnects, revenue leakage and margin erosion and lack of visibility
Reporting lines are varied but profitability needs a board level owner to ensure consistent strategic focus and reporting.
Pricing and revenue management done well are data, accuracy and time dependent.
Technology is a successful enabler to achieve end to end process and data integration.
To move from operational pricing to strategic & proactive pricing and revenue management change management is required to achieve increased productivity.
This slide deck includes a set of tools I have used frequently over the last several years and a few new ones. Most are appropriate to B2B pricing but some may be useful in B2C companies. Some are very pricing specific and others more broadly applicable. Enjoy.
Fluid Pricing Model - Framework introduction
Pricing strategy involves more than picking a number to charge. It involves creating good value that can be produced and sold profitably, communicating the benefits to potential customers, designing price structures that reflect differences in value among different customers and applications, managing customer expectation that prices reflect value, setting price levels that allow the seller to capture a share of that value, and managing price competition to achieve sustainable profitability.
Test bank for cost management a strategic emphasis 7th edition by blocherPintoHoggee
Test Bank for Cost Management a Strategic Emphasis 7th Edition by Blocher
Download at: https://goo.gl/hxNdNw
People also search:
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Sales forecasting with examples ( asian paints and cocacola)sakshi singh
Sales forecasting meaning, advantages, disadvantages etc. Also a strong example of Asian paints and Coca cola with the facts of their sales forecasting for over past years and strategies used by them to manage sales forecasting.
The Machine Learning Guide to Fine Diningraninelken
Can insights from machine learning guide us in human decision-making? We explore this question in the context of fine dining. We will illustrate selected ML algorithms by applying them to real-life problems such as how to choose a restaurant, whether to trust server recommendations, and when to go with a favorite dish or try something new.
Rani Nelken is Director of Research at Outbrain where he works on the advanced algorithms behind the company's recommendation technology. Prior to that he was a research fellow at Harvard University. He has worked at IBM Research and several startups. He received his PhD in Computer Science from the Technion in 2001.
Model N European Survey: Pricing, Profit & Revenue life-cycle management - Li...Alex Rumble
Pricing and revenue management is centric to an organisation’s profitability.
Processes flow across functional silos, across geographies via multiple technologies creating disconnects, revenue leakage and margin erosion and lack of visibility
Reporting lines are varied but profitability needs a board level owner to ensure consistent strategic focus and reporting.
Pricing and revenue management done well are data, accuracy and time dependent.
Technology is a successful enabler to achieve end to end process and data integration.
To move from operational pricing to strategic & proactive pricing and revenue management change management is required to achieve increased productivity.
This slide deck includes a set of tools I have used frequently over the last several years and a few new ones. Most are appropriate to B2B pricing but some may be useful in B2C companies. Some are very pricing specific and others more broadly applicable. Enjoy.
Fluid Pricing Model - Framework introduction
Pricing strategy involves more than picking a number to charge. It involves creating good value that can be produced and sold profitably, communicating the benefits to potential customers, designing price structures that reflect differences in value among different customers and applications, managing customer expectation that prices reflect value, setting price levels that allow the seller to capture a share of that value, and managing price competition to achieve sustainable profitability.
Test bank for cost management a strategic emphasis 7th edition by blocherPintoHoggee
Test Bank for Cost Management a Strategic Emphasis 7th Edition by Blocher
Download at: https://goo.gl/hxNdNw
People also search:
cost management a strategic emphasis 6th edition pdf
cost management a strategic emphasis 7th edition pdf
cost management a strategic emphasis 7th edition pdf download
cost management a strategic emphasis 7th edition solutions
cost management a strategic emphasis pdf
cost management a strategic emphasis 7th edition pdf free download
cost management a strategic emphasis 7th edition solutions manual pdf
cost management a strategic emphasis 7th edition answers
Sales forecasting with examples ( asian paints and cocacola)sakshi singh
Sales forecasting meaning, advantages, disadvantages etc. Also a strong example of Asian paints and Coca cola with the facts of their sales forecasting for over past years and strategies used by them to manage sales forecasting.
The Machine Learning Guide to Fine Diningraninelken
Can insights from machine learning guide us in human decision-making? We explore this question in the context of fine dining. We will illustrate selected ML algorithms by applying them to real-life problems such as how to choose a restaurant, whether to trust server recommendations, and when to go with a favorite dish or try something new.
Rani Nelken is Director of Research at Outbrain where he works on the advanced algorithms behind the company's recommendation technology. Prior to that he was a research fellow at Harvard University. He has worked at IBM Research and several startups. He received his PhD in Computer Science from the Technion in 2001.
This topic looks at one of the strategies used by farmers and small firms in the agribusiness sector to leverage cost, access markets and become competitive in the market. Emphasis was made on the use of contract farming (vertical linkage) and cooperatives (horizontal linkage).
Shifts In Demand And Supply And Market EquilibriumShikhar Bafna
1. APPLICATION OF DEMAND AND SUPPLY
2. MARKET EQUILIBRIUM
3. SHIFT IN DEMAND AND SUPPLY
+ABSTRACT OF TOPICS TO BE COVERED:
1. PRICE DETERMINATION UNDER PERFECT COMPETITION
2. EQULIBRIUM PRICE (PERFECT COMPETITION)
WITH THE HELP OF MARKET EQUILIBRIUM, MARKET DEMAND, MARKET SUPPLY AND THE EQUILIBRIUM BETWEEN DEMAND AND SUPPLY AND EFFECTS OF GOVERNMENT INTERVENTION ON MARKET PRICE.
3. EFFECTS OF SHIFT IN DEMAND AND SUPPLY ON EQUILIBRIUM PRICE AND QUANTITY
A.RIGHTWARD AND LEFTWARD SHIFT IN DEMAND
B.RIGHTWARD AND LEFTWARD SHIFT IN SUPPLY
C.SIMULTANEOUS RIGHTWARD AND LEFTWARD SHIFT IN BOTH DEMAND AND SUPPLY
WITH THE HELP OF GRAPHS FOR EACH CASE.
4. CAUSES OF SHIFT IN DEMAND CURVES
5. CAUSES OF SHIFT IN SUPPLY CURVES
Agricultural Marketing and Price Analysis - CoffeePiLNAfrica
The objective of this course is to provide students with a theoretical and empirical basis for valuating agricultural marketing organization and actors for market performance and public policy decision, and to enable them develop and use the tools of economic theory to analyse issues related to the marketing of agricultural commodities. In addition, case study reports and video footage that demonstrate coffee marketing in Ethiopia are included.
After completing this course, the students should:
Apply economic theory to problems of agricultural marketing;
Design strategies for effective market performance;
Use marketing concepts for analyzing market structure and performance in agriculture and formulate effective agricultural marketing policy;
Apply theoretical models of imperfect market structures to inform public policy;
Appreciate organizational forms unique to agricultural industries; and
Understand price discovery mechanisms under different market structures.
There is always a way to measure content marketing impacts if you plan ahead.... Platforms like Majestic, BuzzSumo, CoverageBook, SEOMonitor, Google Analytics and Google Search Console can help you measure.
With sales in the automotive industry in 2013 at its lowest level since records began in 1990, according to industry association ACEA, there seems to be much more focus on pricing, not only at "finished good" level, but also on the aftermarket playing field. How is your company doing? Discover it here!
price discounting strategy. As a result, the hotel decided to focu.docxChantellPantoja184
price discounting strategy. As a result, the hotel decided to focus on the government market because of the hotel's location.
The government market is price-sensitive (there is an allowable per diem) and not as quality-conscious, and the hotel could selectively discount to this large-volume market. Once again, it is important to point out that marketing planning is a continuous process. Marketing managers must evaluate the situation and adapt to changes that occur. Evaluating the success of the marketing plan is the moment of truth. Managers develop a plan to increase the probability of success, and once the plan is implemented, it is important for management to monitor the results. Any variance from the predicted results should be identified, evaluated, and corrected.
As the environment changes or the results vary, management may need to return to the appropriate step to reformulate marketing strategy or the action plans. The marketing planning process continues as a dynamic procedure, with sufficient flexibility allowing for changes in strategies, action plans, or implementation schedules.
SALES FORECASTING
190 CHAPTER 5 DEVELOPING A MARKETING PLAN
SALES FORECASTING 189
One of the most critical components of a marketing plan is the forecast for sales. Sales forecasting is the process for determining current sales and estimating future sales for a product or service. The success of the firm often results from the accuracy of forecasts. The decisions about the elements of the marketing mix—product-service mix, price, promotion, and distribution— that are made during the situation analysis are based on sales forecasts.
Sales forecasting The process for determining current sales and estimating future sales for a product or service.
Sales Forecasting Techniques
Sales forecasting techniques are separated" into two broad categories: quantitative techniques and qualitative techniques. Quantitative techniques use past data values and employ a set of rules to obtain estimates of future sales. Qualitative techniques rely on judgment or intuition and tend to be used when data are not readily available. Quantitative methods can be further classified as either causal or time series. Both types of quantitative methods use trends in historical data to predict future sales; however, causal analysis techniques establish a cause and effect relationship between variables and the results. Using historical data to establish the relationship between sales and other factors that are believed to influence sales. These techniques model the relationships
Expert opinion
Marketers look to a panel of experts with knowledge of the industry and the marketplace to provide a forecast.
Delphi technique The Delphi technique involves collecting forecasts, developing composites, and sending the data to those participating several times until a consensus results.
Sales force forecast
This technique aggregates the sales forecast of each .
Statistics applied to the interdisciplinary areas of marketingCarol Hargreaves
Optimising price and marketing mix.
Concept of learning. When an account/product has too little sales data, bayesian shrinkage allows us to borrow information from other accounts.
Deals with outliers, by shrinking estimates towards each other.
Allows one hierarchical model instead of multiple models.
More robust, stable estimates with significant regional and account variation in estimates that cannot be done in a classical linear model.
Provides price elasticity measure that shows the impact of price changes on volume
Seventh seminar for my Managing Marketing Processes course in the MGM program at the Stockholm School of Economics, http://www.hhs.se/EDUCATION/MSC/MSCGM/Pages/default.aspx
Earned Media Amplification - Personal Care BrandMasood Akhtar
Our social media measurement approach applied to a popular personal care brand. Here we assess the degree to which PAID media is AMPLIFIED by EARNED media conversations.
Message Mix Modeling - Leveraging Creative for Sales GrowthMasood Akhtar
Message Mix Modelling provides an extension to traditional media mix modelling. Here we attribute incremental sales and ROI to media channels, campaigns and messages.
GE Lifesciences - Social Listening for ScientistsMasood Akhtar
Here's a short case study on our unique approach to social media insights based on scientific commentary. Here we were able to size, scale and trend Themes and Topics related to 'Protein Purification'. Insights were (are still being) applied to a multitude of digital content platforms.
Social Listening for Scientists - BLA Case StudyMasood Akhtar
Excerpts in a custom social listening engagement with GE Life-sciences around Protein Purification. This uses our proprietary Language based approach to bring structure to a large body of scientific text data.
Modeling the Customer Journey insights using Structural Equation Modelling. This provides a battery of insights into the causal relationships that exist for Brand X's marketing eco-system.
Customer Journey Insights using Structural Equation Modelling_BLA GLOBAL 2014Masood Akhtar
This analysis sheds light into the connectedness of one brands' insight ecosystem. Using Structural Equation Modelling we have been able to provide a multitude of insights from; some of the causal relationships that exists, the transmission of offline and digital media to sales, the role of social display versus true social consumer engagement and salient concepts that can help steer content generation
Social Media VOC Measurement for AirlinesMasood Akhtar
Here's some snippets from a recent econometrics piece for an airline operator. The operator has struggled for a number of reasons (internal and external). Now wanted to show more accountability for it's marketing spend.
Monetising Fan Engagement from Sponsorships and Sports EventsMasood Akhtar
Using tagged media within predictive econometric models is no longer sufficient to monetise sponsorship campaigns. Our Semantic Engagement Index (SEI) decodes the fan engagement from conversations during live sports events. This helps to understand the sponsorship effectiveness is whole new light. Packaging the SEI into an econometrics approach helps to better account for sponsorship and steer future allocations.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
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Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
Getting the Price Right
1. Copyright 2013 Bottom Line Analytics All rights reserved.
The Price is Right?
The Six Steps to More Profitable Pricing
Leveraging Analytics to Generate More
Profitable Pricing Strategies & Decisions
Sep., 2013
2. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
2
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
3. Copyright 2013 Bottom Line Analytics All rights reserved. 3
Forward: The Imperative and Challenge
of Pricing
• Pricing is considered one of the Four-P’s of marketing
and a critical part of the marketing mix
• In fact, no single part of the marketing mix has as much
impact on sales performance and profitability than
pricing
• Yet, managers tend to spend less time and research on
improving pricing decisions and, likewise, are less
knowledgeable of the specific impact that individual
pricing decisions have on their brand’s performance in
advance of a pricing action
• Consequently, sub-optimal pricing decisions are
common and managers literally leave millions of dollars
of profit and revenue on the table due to poor pricing
decisions
4. Copyright 2013 Bottom Line Analytics All rights reserved. 4
Objective
• In order to adequately plan, evaluate and implement
profitable pricing decision, managers must have a
precise understanding of the sales and profit impact of
given price changes. This will require development of
advanced models or analytic tools which measure:
• Brand or Own Product Price Elasticity, which is the
percent change in brand sales due to a given
percent change in brand price over time, and
• Cross or Competitive Price Elasticity, which is the
percent change in brand sales due to a given
percent change in competitors’ pricing over time.
5. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
5
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
6. Copyright 2013 Bottom Line Analytics All rights reserved. 6
Destination
• This outlines a 6-step is a proven process that will lead companies and
brands to a more effective pricing strategy.
• We take our clients directly through each of these important steps:
1. Situation Assessment and Objectives: This involves a thorough
review of sales and pricing trends by market and channel for the
client brand and key competitors in order to identify where pricing
issues and problems might exist. This will then involve identifying
specifically the revenue and profit objectives that the client wants to
get from its pricing.
2. Analytics: This is all about building predictive models and deriving
specific price elasticities by brand and SKU for both the client brand
and the cross elasticities versus competitors.
3. Generating pricing scenarios: Once price elasticities are
determined, these are estimates of the revenue and profit impact of
various pricing alternatives. Once we have generated a sufficient
number of scenarios to understand a desirable course of action, we
formalize a general pricing plan
7. Copyright 2013 Bottom Line Analytics All rights reserved. 7
Destination
4. Evaluating Risk: This involves understanding and predicting how
competitors are likely to respond to the client brand’s pricing actions
and the impact of that. In addition, this also involves what is needed
and the cost of rectifying various in-market imbalances in the client’s
brand pricing.
5. Consolidating insights and developing pricing principles and
strategies: With sufficient scenarios and full understanding of
current conditions, we formalize pricing principles and develop a
formal multi-year pricing strategy and action plan.
6. Optimizing pricing to maximize profit yield. We develop a specific
SKU-by-SKU pricing plan by optimizing the price changes by SKU to
maximize profit yield. We then plan on implementation,
8. Copyright 2013 Bottom Line Analytics All rights reserved.
1- 3 Plan & Assess
4- 5 Prepare
6 Optimize
Assess &
Set Yield
Targets
Situation &
Objectives
Model
Price
Elasticities
Analytics Competitor
Response
Evaluate
Risk
When & What
to
Implement
Generate
Scenarios &
Plan Timing
Consolidate Insights
Summarize
6 Principles
Profit
Yield
Optimize
A Proven 6 Step Process
9. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
9
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
10. Copyright 2013 Bottom Line Analytics All rights reserved.
Step 2 Analytics: Sales Model Architecture
10
Brand
SKU
Price
Comptv.
Price
Macro-
Economic
Season-
ality
Weekly Retail
Sales by
Market
Determining Price Elasticities starts with a Predictive Econometric Model of
Brand Sales
Weekly Retail Sales
are driven by
Brand SKU Price
Plus
Competitor’s Price
Plus
Macro-Economic Factor
Plus
Seasonality
11. Copyright 2013 Bottom Line Analytics All rights reserved.
Econometric models are used to derive price elasticities. All models
need to be thoroughly vetted for their accuracy and predictive
validity.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Actual
Model
11
Models show an excellent predictive fit to actual sales
R2 =97.3, Holdout R2 =89.9, MAP = +/- 1.9%
12. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
12
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
13. Copyright 2013 Bottom Line Analytics All rights reserved.
We derive price and profit elasticity curves with and without
competitor price reciprocation
1.08
1.10
1.12
1.14
1.16
1.18
1.20
10.0
12.0
14.0
16.0
18.0
20.0
22.0
-15% -10% -5% 0% 5% 10% 15%
UnitSalesMil
NetProfitMil.
Price Change
Profit Mil wo Reciprocation
Profit Mil w Reciprocation
Unit Sales Mil wo Reciprocation
Unit Sales Mil w Reciprication
13
When competitors match Brand price changes, it reduces the impact from
that pricing change
Brand Price & Profit Elasticity
14. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
14
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
15. Copyright 2013 Bottom Line Analytics All rights reserved.
Models also used to understand what is driving growth and
decline across markets
4.5%
1.3%
-11.3%
-1.0%
-15.0% -10.0% -5.0% 0.0% 5.0% 10.0%
Market 1
Market 2
Market 3
Total
2012 Sales % Impact
Competitor Pricing
Your Brand's Pricing
Macro-Economic Impact
Base Momentum
15
From the econometric model, we can determine the impact of different
drivers and pricing on overall performance. The problem Market 3 is the
one area dragging down overall brand growth
16. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
16
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
17. Copyright 2013 Bottom Line Analytics All rights reserved.
Price Elasticities and Effects must be at the SKU level, where
pricing decisions are made
0.1%
0.1%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.5%
1.6%
2.5%
3.2%
5.4%
7.2%
7.3%
9.7%
25.7%
35.2%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
SKU 1
SKU 2
SKU 3
SKU 4
SKU 5
SKU 6
SKU 7
SKU 8
SKU 9
SKU 10
SKU 11
SKU 12
SKU 13
SKU 14
SKU 15
SKU 16
SKU 17
SKU 18
Retail Unit Sales Impact % Due to Pricing
Retail Sales Impact %
17
BLA models pricing elasticity at the SKU level, where pricing decisions are
made. Evidence usually shows that a relatively small proportion of a
brand’s SKUs drive most of the pricing impact.
18. Copyright 2013 Bottom Line Analytics All rights reserved.
We also look at how pricing at the SKU level affects profits
-1.5%
0.0%
0.9%
1.3%
1.3%
1.5%
2.3%
2.3%
3.3%
4.4%
4.5%
4.7%
5.6%
7.3%
9.7%
13.8%
15.9%
22.8%
-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
SKU 1
SKU 2
SKU 3
SKU 4
SKU 5
SKU 6
SKU 7
SKU 8
SKU 9
SKU 10
SKU 11
SKU 12
SKU 13
SKU 14
SKU 15
SKU 16
SKU 17
SKU 18
Net Margin Yield Impact % Due to Pricing
Retail Sales Impact %
18
And similarly, a few SKUs tend to drive most of the profit impact due to
pricing
19. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
19
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
20. Copyright 2013 Bottom Line Analytics All rights reserved.
Different markets and channels have different price responses
or elasticities under different conditions
-0.3%
-0.6%
-1.4%
-0.5%
-0.2%
-0.3%
-1.0%
-0.3%
-1.6%
-1.4%
-1.2%
-1.0%
-0.8%
-0.6%
-0.4%
-0.2%
0.0%
Market 1 Market 2 Market 3 Total
Price Elasticity: Change in Retail Unit Sales Due to a
1% Increase in Retail Price
WO Reciprocation Full Reciprocation
20
Our price elasticity model looks at market/SKU level and with and without
competitor reciprocation of your price change
21. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
21
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
22. Copyright 2013 Bottom Line Analytics All rights reserved.
The model also factors in the effects of macro-economic trends
785,000
790,000
795,000
800,000
805,000
810,000
815,000
820,000
825,000
830,000
835,000
840,000
-15% -10% -5% 0% 5% 10% 15%
AnnualRetailSales
Change in Housing Starts
Housing Starts and Unit Sales
Unit Sales
22
Our Model is also able to isolate the impact of key macro-economic drivers
23. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
23
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
24. Copyright 2013 Bottom Line Analytics All rights reserved.
Deriving a pricing strategy involves knowing which SKUs are the
most critical players in the brand pricing equation
24
Quadrant Plots visually show which SKUs are the most critical in terms of
pricing
Bubble size represents net revenue
25. Copyright 2013 Bottom Line Analytics All rights reserved.
Content
25
Forward, Objectives & Destination
Destination: The 6 Step Process
1. The importance of analytics
a) Developing a Predictive Model
b) Deriving Price Elasticity Curves with Competitive Effects
c) Measuring the Volume Drivers and Variances
d) The Importance of Determining the Sales and Profit Impact by SKU
e) Price Sensitivity by Market and Channel
f) Macro-Economic impacts on the business
g) Identifying the Critical SKUs for Pricing Success
h) Price Simulation, Profit Optimization and Scenario Planning
26. Copyright 2013 Bottom Line Analytics All rights reserved.
Step 6: Optimize: Optimized Pricing
26
A simulation tool which permits us to estimate different scenarios and
optimize profitability within specified targets and constraints, is essential
27. Copyright 2013 Bottom Line Analytics All rights reserved.
Step 4 Generate Scenarios & Plan Timing: Generate Pricing
Scenarios
$0.86
$1.04
$1.28
$1.14
$1.42
$1.77
$-
$0.50
$1.00
$1.50
$2.00
Yield $Mil
Incremental Revenue & Profit Yields from
Optimized Price Scenarios
Revenue 3% Increase
Revenue 4% Increase
Revenue 5% Increase
Net Profit 3% Increase
Net Profit 4% Increase
Net Profit 5% Increase
27
The final pricing decision is from running various optimized pricing
scenarios and selecting that which achieves profit goals
28. Copyright 2013 Bottom Line Analytics All rights reserved.
Step 4 Generate Scenarios & Plan Timing: Price Elasticity
Trends by Period
0.30
0.32
0.34
0.36
0.38
0.40
0.42
Total Elasticity (Absolute Value)
28
BLA’s modeling approach can identify points-in-time when price sensitivities
are highest and when is the strategically best time to implement pricing
increases or decreases
29. Copyright 2013 Bottom Line Analytics All rights reserved.
Contact Us
29
Michael Wolfe
mjw@bottomlineanalytics.com
David Weinberger
david@bottomlineanalytics.com
770-649-0472678-314-8446 (m)
770-485-0270 (o)
www.bottomlineanalytics.com
Masood Akhtar
ma@bottomlineanalytics.com
+44 7970 789 663