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.
- 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
QBenchmark and standardize prices across geographies & store locations and against competitors
Recommend price levels for individual products based on consumer preference and price perception to maximize revenue
Cross Price Elasticity to determine substitute and complementary products