Consumer Research, CPG & Retail, Research and Information Services
Price and promotions influence consumers’ perceptions of products, which can directly impact sales. In order to price just right, it is important to understand the impact of price changes and promotions on customers’ perception of products.
To ensure that the future price changes do not negatively impact sales, the client, a confectionery manufacturer, wanted to understand the effect of price change on the sales of its product.
Price and promotions influence consumers’ perceptions of products, which can directly impact sales. In order to support profitable sales growth, it is important to understand the impact of price changes and promotions on customers’ perception of products.
To ensure that the future price changes do not negatively impact sales, the client, a confectionery manufacturer, wanted to understand the effect of price change on the sales of its product.
Netscribes employed standard econometric techniques for conducting the statistical analysis of the client’s existing data such as retail audit, scanning, panel and BARB and meal advertising data and internal records on promotional activity weight changes. Using our inhouse research and analytics capability, Netscribes carried out the following:
Through the analysis, the client could identify the price effect on brand sales. The price elasticity of key pack formats within the brands analyzed was established.
In summary, the client was able to predict probable changes in sales volumes resulting from a change in price.
