MARKET POTENTIAL INDEX ANALYTICS

Developing a district level market potential index to prioritize investments in India for a global beverage company

1. Context

A Leading CPG firm has over 100+ SKUs & given the oligopolistic nature of the category, pricing is a key lever for growth. With multiple pricing initiatives running across SKUs every quarter, it was challenging to prioritize the key pricing initiatives for driving profitable growth in the business

2. Solution

we developed a simulation environment which helps simulate the impact of multiple commercial levers including pricing. The simulator enabled analysis of various “what-if” scenarios and evaluating profit – revenue – volume growth trade-offs across each scenario. The client was also able to assess the impact of multiple pricing decisions on the overall business and hence enabling the firm make more prudent choices.

3. Impact

Based on the simulation environment, the client is able to prioritize between various SKU pricing decisions and invest more marketing resources behind the pricing decisions which have a higher impact on the business