“Increase Revenue and Profits Through Improved Pricing and Promotional Cadence ”
While marketers are jumping on the marketing accountability bandwagon and using ROI to determine where it is best to spend their marketing dollars, they still need to keep an eye focused on pricing. This may seem obvious, but developing a pricing strategy is far from easy.
MMA’s Pricing Analytics Benefits Clients By:
Defining the optimal pricing strategy and promotional cadence.
Understanding the impact of price changes by competitors.
Understanding variances in the impact of price changes by response channel, market and segment.
The MMA Approach
MMA’s pricing analysis is comprised of four key components:
Base Price Elasticity: Base Price Elasticity is a measure of price sensitivity that is defined as the percent change in volume resulting from a change in everyday selling price. As part of this analysis, MMA will also provide Base Price Elasticity curves that show the non-linear changes in sales that occur due to a change in price.
Promoted Price Elasticity: Promoted Price Elasticity estimates the change in sales that occurs due to a corresponding advertised price reduction. MMA provides Promoted Price Elasticity insight at the store, chain, or national level.
Promotional Vehicle Lift: As a part of this analysis, MMA quantifies the lift in sales from promotions such as circulars, fixtures, features, displays and others. Since these activities are typically accompanied by a corresponding price reduction, MMA provides lift matrices to isolate the rise in sales that results from each of these activities.
Baselining: Baselining enables companies to measure the positive and negative changes in base and incremental sales across its portfolio. This may be done across various geographies and retailers. MMA’s analysis estimates non-price promoted (‘base’) volume on a continuing basis and, consequently, identifies incremental sales arising from promotion.
