How a Skin Care Company  Identified a 15% Potential Profit Uplift by Optimizing Their Prices

Promotion Price    |      Beauty & Personal Care |   Global

The client, a skincare product manufacturer, distributes their products through both online and offline pharmacies and retailers. They sought to shift towards a more data- driven approach for pricing strategy.

The objective was to utilize data to better understand price elasticities and the effects of pricing decisions on their own and their competitors' product portfolios.

To achieve this, the client partnered with Buynomics to estimate and validate the impact of price increases on sales volumes.

The manufacturer choose to implement Buynomics’ software due to its holistic approach and Virtual Shopper AI technology, which simulates thousands of scenarios to predict how the shopper will behave in front of the supermarket shelf.

By partnering with Buynomics, the team successfully modeled price and availability changes. The insights from Buynomics' software, which highlighted the impact of price changes on the category and the market, were crucial for the manufacturer during negotiations with retailers and pharmacies.

Understanding a Price Elasticities Range

Buynomics identified product price elasticities, mainly ranging between -1.3 to -0.1 at offline channels and -3 to -0.5 at online channels.