Element / Retail - Round Price Impact Analysis in France Simulator Tool
Round Price Impact Analysis in France Simulator Tool
Problem :
The marketing team lacked visibility into how round price thresholds (e.g., €1.99 vs €2.00) influenced sales volume. The pricing model didn’t account for psychological price sensitivity.
Solution :
Three years of historical sales data was analyzed to group sales performance across different round price buckets. A script was developed to calculate the most beneficial rounded prices and their associated volume impacts, excluding promo weeks for accuracy.
Outcome :
The marketing team could now simulate pricing based on round price thresholds, gaining valuable input for promotional pricing strategies and maximizing profit potential for both Mars and retailers.