Redkite & Databricks: Price Optimization

Introduction to Price Optimization for consumer goods companies

At Redkite, we recognize the importance of data-driven pricing strategies, and the critical aspect pricing has for consumer goods organizations, influencing product positioning and customer behavior.

By carefully considering factors like market competition and consumer demand, we offer a pricing analytics solution which transforms raw data into actionable insights, empowering pricing teams to extract crucial insights, enabling informed decisions to achieve short-term and long-term pricing goals.

Why do you need Price Optimization?

By strategically setting the most effective product prices, companies are provided with the ability to make well–informed choices regarding their pricing strategies​

​With better analytics, retailers can create value by intelligently linking pricing and promotions based on optimal price setting and promotion design.

Why should organizations act

  • Recent cost inflation driving margin pressure results in the need to adjust pricing & promotions strategies​
  • Consumer behavior has increasingly shifted since 2020, with preferences and buying behaviors shifting as rapidly as the volatile market​
  • There is now an increased complexity across consumer segments, channels, products, and price tiers

How can Price Optimization help?

Pricing Optimization provides consumer goods companies with an understanding of pricing in the competitive landscape via activities including:

  • Analyzing pricing strategies amongst the competitive set​
  • Using data to optimize the right price pack architecture
  • Understanding how volume sales are impacted by pricing strategies

what could a bespoke pricing solution look like?

Effortlessly recognize the most popular pack sizes in each category and their corresponding unit prices, whilst revealing untapped areas in the market.

Understand a high-level overview of cannibalization across brands by analyzing market share growth/decline, category price tiers and key competitor strategies across channels and segments.

Scenario modelling tool to generate a forecasted P&L for inputted scenarios, allowing users to easily identify optimum price points to generate maximum revenue and profits.
Understand the influence of AUP (Average Unit Price) on Unit Sales comparing your price positioning to competitors and consumer willingness to pay at various price points.

Want to find out more?

To find out next steps on how our bespoke solution can be customized for your organization, reach out to either points of contacts listed or contact us here.

Click here to read our databricks solution accelerator blog and download our notebooks.

Abigail Bennett
Director, Consumer Goods
Email Abigail

Sonia Patel
Go-To-Market Lead
Email Sonia

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