Case study: Price Optimization for a leading Global Brewery

About the Client

The client is the world’s largest brewing company headquartered in Belgium and is considered to be one of the largest FMCG companies in the world.

Business Context

The challenge articulated by the client was to understand the right pricing architecture of products across regions given a competitive landscape, the price sensitivity of products and cannibalization effect.

BRIDGEi2i Solution

BRIDGEi2i’s CPG consulting team partnered with the client to build a price optimization solution to help explain customer behaviour. Insights included the identification of brand perception and brands that cannibalize heavily. The solution also provided multiple pricing scenarios to drive an optimal change in brand revenue along with market share.

  • BRIDGEi2i Data Experts collected base information regarding price, volume and distribution.
  • Survey data was also collected (consumer choice & preference information).
  • In cases where survey data was not available , POS data was considered.
  • Customer demographics and product attributes were also taken into consideration.

BRIDGEi2i’s AI Labs used an in-house grid search method based on Monte-Carlo Sampling, for fast approximation of global optimum to arrive at an optimal price to maximize revenue/volume.

BRIDGEi2i’s AI experts deployed the Pricing Watch Tower solution with an integrated voice assistant that provides dashboards and real-time insights.

Business Impact

Visibility to perceived utility of products/brands across customer demographics

Increase in Market-Share by Recommending the Right Price Architecture for SKUs
$ Increase in Net Revenue, due to Volume Upliftment from Optimized Price Architecture