Case Study: a leading global CPG company achieves $12.5M revenue uplift with C5i's pricing and promotion optimization

Price Promotion Effectiveness Analysis for a Leading Global CPG Conglomerate

The customer, a leading global CPG company, sought to understand the price elasticity and cross-elasticity between its key products. Their challenge was to identify optimal pricing and promotional strategies to drive revenue without sacrificing market share or volume. They engaged the vendor, C5i, for a price promotion effectiveness analysis.

C5i's solution involved a hierarchical Bayesian regression analysis to model product interactions and customer value perception across sales channels. This analysis powered a pricing simulator that allowed the client to test various scenarios. The recommended optimal pricing strategy from C5i identified a positive revenue impact of USD 12.5 million for the CPG company.