CASE STUDY

Price and Trade Advantage™ sees a +€23M gained from changing the pricing strategy

Jul 10, 2024

Snapshot

MARKET RESEARCH SERVICES

Price and Trade Advantage™

DATA TYPES

POS

INDUSTRIES

Food and Beverage

COMPLETION

Q2, 2023

The Challenge

A large beverage manufacturer was losing market share over the past year. The client wanted to revert the negative share trend without losing profitability but couldn’t determine whether a permanent price reduction versus in-out price promotions was the best strategy. They requested a full portfolio evaluation of their 46 brands to identify the best pricing strategy.

The Results

By tailoring each pricing strategy to each brand (permanent price reduction, in-out price promotion or strong on-pack communication), the client was able to adjust quickly to market conditions in a very targeted way to maximize profit, whilst strengthening the brands’ image.

Insight

Leveraging the Price and Trade Advantage™ solution, Circana identified the price elasticities, as well as the effect of on-pack communication and promotions across all the brands. Circana’s evaluation concluded that the client shouldn’t take a one-size-fits-all pricing approach and recommended that specific strategies should be implemented across brands to obtain the best profitability.