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FMCG
FMCG: Price Optimization Engine
Value
+3.8% gross margin
Timeline
12 weeks
The Problem
Simple elasticity-based pricing was not automated and could not suggest optimal prices. Lack of standardized data and alignment on scenarios meant chaos in fast-paced environments.
The Solution
Built a hierarchical mixed-effects model for Price Sensitivity Analysis, enabling precise measurement, consideration of cross-elasticities and margin optimization across pricing groups. Integrated PoS data, competitor pricing feeds, and ERP systems.
Tech Stack
PythonSQLRedshiftPower BI
The Impact
3.8%
3.8% gross margin increase for margin-focused categories
5.6%
5.6% volume growth for tactical products
✓
Automated decision-support tools with explainability