Success Story #1
Price Elasticity Modeling to Support Pricing Decisions
Consumer packaged goods
Supply chain & Manufacturing
Marketing
Finance & IT
Product development
Business Problem
A beverage marketer faced marginpressure due to tax-driven price increases and lacked a clear understanding ofcustomer price elasticity and substitution effects across brands.
Actions Taken
· Built price elasticity models usingregression-based methods.
· Incorporated market mix variables,including media spend.
· Accounted for brand substitution effectswithin the product portfolio.
· Delivered analytical outputs via dashboardsto evaluate pricing scenarios.
Outcomes Achieved
· Enabled evaluation of 5–10% price increasescenarios.
· Improved understanding of customer pricesensitivity across brands.
· Supported revenue optimization decisionsacross the brand portfolio.
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