Promotional price elasticity by tactic
See how each product responds to a discount, with and without feature and display.
Account Brand Promo Elasticity Strategy ranks every promoted product group at an account from least to most elastic and shows its response to a discount by tactic.
Covers every promoted product group at every account you configure.
See the promotional response for your product groups.
- Brands
- Every promoted product group you configure
- Competitors
- Set-average response as the benchmark
- Accounts
- Every account you configure
- Cadence
- Trailing 52 weeks
The question it answers
Which products are worth discounting at this account, and with which tactic?
Account Brand Promo Elasticity Strategy ranks every promoted product group at an account from least to most elastic on base and promo price. For any group, it shows the response to a discount alone, with feature, or with feature and display, and translates the lift into weekly units and dollars.
Why it matters
The same discount produces very different results from one product to the next, and feature or display support can matter more than the depth of the cut. Plans built on a standard discount for every product overspend on the unresponsive ones. Ranking products by responsiveness, by tactic, shows where promotional funds work hardest.
How it works
- Inputs
Supplied promo and base coefficients at product-group level, feature and display multipliers, everyday shelf price and the latest 52 weeks of dollar sales for the account.
- Analysis
Product groups are ranked on one elasticity spectrum by brand. The chosen group's response is calculated for each tactic and compared with the set-average curve.
- Outputs
A ranking, a response curve by tactic, and the lift in base, promoted and incremental units and dollars per week.
What you get
Elasticity ranking
Every product group at the account, least to most elastic.
Response by tactic
Discount alone, with feature, and with feature and display.
Set-average comparison
Each group against the average response curve.
Lift in units and dollars
Base, promoted and incremental per week.
Example in action
Illustrative scenario
Your brand discounts two product groups equally at every account. At one account the ranking tells a different story. The ranking shows one is among the most elastic and the other among the least. For the responsive group, adding display lifts weekly units far more than a deeper cut. The team reallocates the second group's funds to display support for the first.
Questions
- Does it show profit?
- No. Lift is volume only. Margin, trade rate and retailer pass-through are not modeled.
- Do we need existing coefficients?
- Today, yes. It runs on supplied coefficients and tactic multipliers. New estimation is a separately scoped add-on.
- What is a promoted product group?
- A set of items that are priced and promoted together, treated as one unit for planning.
- Is there a limit on product groups or accounts?
- No. Include as many as you need. Pricing scales with the coverage you configure.