Context and objectives
Across the various sites operated by our client, cash register data was collected but not used, leaving little visibility on sales and actual prices.
The objectives were to improve understanding of the data, support sales and provide analyses for selected sites in the segment, encourage the use of data to identify pricing transformation opportunities, and deliver concrete item-level pricing recommendations.
Outcome
The project met its goals: a better understanding of the data, and stakeholders convinced of the value of comparing fairly heterogeneous sites.
More than €20 million in pricing opportunities were identified, along with improvements to the client's pricing process, enabling more cohesive pricing across sites while respecting their differences.
Our approach
Step 1: diagnosis
- Data access and data quality assessment
- Data cleansing and construction of unified data frames
- Data scoping, with back-and-forth analyses aligned with the client to support scope decisions
- Creation of categories and matching of items between sites to make them comparable
- Sales and offer analyses, including comparisons between sites on several criteria (breakdown by category, time of day, day of the week, product frequency, etc.)
- Analysis of pricing policies, including a global price index and an analysis of price changes by item and category
- External benchmark of more than 20 external sites to gather product mix and pricing information
Step 2: workshops
- Workshops with the marketing team (responsible for pricing guidelines) and site managers (responsible for item-level pricing and price execution) to present and discuss findings and pricing recommendations
Step 3: evaluation
- Evaluation of pricing processes and proposals for improvement
