Case Study: a global food and snack producer offsets UK tax costs with pricing and promotion optimization from Buynomics

a global food and snack producer identifies £2.5 million revenue uplift potential with Buynomics

A global food and snack producer faced a significant financial challenge with the introduction of a new Extended Producer Responsibility (EPR) tax in the UK, which was anticipated to substantially increase its expenses. To counterbalance these regulatory compliance costs, the company partnered with Buynomics and utilized its pricing and promotion optimization software to identify new revenue opportunities.

Using Buynomics' software, the RGM team simulated various pricing and promotion scenarios to forecast impacts on revenue and market share. They implemented a data-driven strategy, applying a 5% price increase on products with inelastic demand and a high-low promotion strategy for more price-sensitive items. This approach, modeled by Buynomics, successfully identified a £2.5 million revenue uplift potential to mitigate the negative effects of the new tax.