Challenges
The client was not new to Price Elasticity models. However, its key concern was about the relevance and accuracy of its existing price elasticity calculations for genuinely optimizing the market demand.
The client also had profitability concerns and believed it was incurring more costs than required due to an outdated method of calculating Price Elasticities.
The client wanted to use an innovative approach to ensure accuracy in the calculation of price elasticities at a granular level along with essential correlations with SKUs, channels, and geographies.
