Case Study
We worked with our client, a major PE fund to devise a pricing strategy consistent across countries and locations for a multinational restaurant chain. In addition to the pricing tool, we used direct and indirect surveys to provide a holistic understanding of price perception among existing customers and to validate the inputs to the pricing tools.
Solution
- Created a pricing tool that helped estimate expected profit given changes to COGS or pricing decisions
- Analysed customer survey responses to derive the opportunity to increase price and compute gross margin across price levels for each SKU
- Conducted conjoint analysis to measure product preferences and forecast how price affects demand across products and services (Cross-Price Elasticity)
- Developed a rule-based classification tree to identify drivers that prompt customers to choose between combos
Value Addition
Quantitative tool to model different scenarios and incorporate various assumptions
Integrate business and customer views to create a top-level structure to drive pricing decisions
Cross Price Elasticity to determine substitute and complementary products
→ Related Service Offering: Private Equity Analytics as a Service