Element / Retail - Optimizing Profit Margins Through Simulated Pricing Scenarios
Optimizing Profit Margins Through Simulated Pricing Scenarios
Problem :
Pricing decisions across product groups often lack strategic foresight, leading to suboptimal margins for both manufacturers and retailers. Without simulation capabilities, stakeholders struggle to evaluate the financial impact of price changes or determine the ideal markup for maximizing profit.
Solution :
The Pricing Simulator Tool allows users to model different pricing scenarios by adjusting control variables such as shelf price, elasticity, and competitive follow-through. By simulating changes at the product group level for specific retailers, it identifies the optimal price increase that benefits both Mars and its retail partners.
Outcome :
Decision-makers gained data-backed pricing recommendations that maximized profitability while preserving retailer collaboration. The tool enabled smarter margin planning and revenue forecasting th