SMS is a recognized leader in the area of strategic pricing. Our solutions maximize volume and profitability through the application of statistical models to point-of-sale, shipment, household and survey data.
- Quantify product price elasticity by consumer segment & retailer
- Optimize trade promotion spending
- Implement pricing & promotional practices that reduce price sensitivity
- Identify key absolute & relative thresholds
- Develop & execute an effective competitive pricing strategy
We work collaboratively with clients to develop, execute and implement successful everyday and promotional pricing tactics that maximize sales without eroding brand equity. Our pricing strategists understand the U.S. consumer market as well as current retail and economic trends, enabling them to present analytic results to clients in a commercially relevant context.
Pricing Analytics: Demand Modeling
SMS proprietary and extensively validated predictive demand models are based on the Bayesian Hierarchical architecture, providing clients with the following insights:
- Shelf or non-promoted price elasticity
- Competitive price cross elasticity
- Price threshold testing
- Promotional price response
- In-store deal lifts
- Category price response
- Economic impact on category and key brands
Pricing Analytics: Controlled Store Testing & Survey Modeling
In rapidly changing economic and inflationary environments, point-of-sale demand models alone may not provide a forward-looking view of emerging consumer behavior. SMS offers the following services to help clients develop an effective pricing structure in dynamic consumer environments.
- SMS Controlled Store Testing (CST) to measure the impact of price points significantly outside current retail price ranges.
- Survey or panel based Discrete Choice Modeling (DCM) to identify emerging and forward-looking consumer attitudes about price and value.
SMS develops everyday & promotional pricing tactics that maximize sales without eroding brand equity.
