Pricing Strategy
The UK's largest Health & Beauty retailer relied heavily on third-party vendors for pricing analysis, resulting in high costs and limited flexibility. Decision Studio built a scalable in-house pricing analytics capability that increased sales by 8% through smarter trade promotions.
Decision Studio partnered with the retailer to build a scalable in-house pricing analytics capability. The engagement began with an in-depth analysis of the key drivers influencing pricing and demand, including socio-economic factors. Advanced price elasticity models were developed to measure customer responsiveness to price changes across products and segments. By uncovering strong correlations between socio-economic status and price sensitivity, the team enabled segmentation-based insights and significantly improved demand forecasting at the product-category level. These insights supported the design of smarter trade promotions while embedding a sustainable internal pricing framework.
8%
The new in-house pricing analytics capability delivered measurable business results. Sales increased by 8% through more effective and targeted trade promotions, while demand forecasting accuracy improved, enabling confident, data-driven decision-making. In addition, the retailer reduced operational costs by eliminating dependency on third-party vendors and establishing long-term self-sufficiency in pricing analysis.
