Pricing is an annual strategy for prices for CPGs. Generally, these are price increases, and the CPG can modify these prices more than once a year.
A Pricing strategy is necessary for the CPG to define its products’ full prices (before discounts) and plan its trade promotions strategies throughout the year. CPG’s full price is the reference point for calculating promotional prices for products and services.
This module is comprehensive and flexible. It allows the user to customize and adjust its predictive pricing scenarios that best suit their strategy.
It is similar to the Trade Promotions module- However, the main difference between both modules is that in Pricing the goal is to increase prices to maintain or increase its profitability. On the other hand, the goal of TPO is to increase demand and market share through investment in discount and promotional strategies.
There are two main views:
Grid View
- Sell Out price vs. Sell Out predicted volume simulation for different Pricing Strategies (Product-Retailer-Area by default).
- Scenarios creation*
- Predictive Cycle and Scenario Selection
- Product search bar
- Totals summary of Sell Out, Sales Out, and Margin
*A Scenario is a set of products predictions for a specific price combination.
Summary View
Comparison View between a Selected Scenario vs. the Reference scenario*
- Top gaining Margin and Volume Products
- Price out Changes and its impact on Sellout Volume.
*Reference scenario is the predictive volume at the reference price (max price of the last 12 available months) for each Product-Retailer-Area. It’s the default scenario in Athena.
It is important to highlight that the information is available at different levels thanks to the filter feature.