The food and beverage industry in North America is grappling with stagnating profits due to inflationary pressures, changing consumer buying patterns, and intense competition. Effective price optimization is critical to overcoming these challenges, yet many businesses face hurdles like limited visibility into granular pricing data. Comprehensive Consumer Packaged Goods (CPG) market research can provide actionable insights into in-store pricing, competitor strategies, and consumer price sensitivity, enabling businesses to improve profitability.

Client’s Background

The client is a North American food and beverage company specializing in healthier alternatives to traditional convenience foods and drinks. Despite its diverse product portfolio and strong presence across retail channels, the business struggled to meet sales targets due to inefficiencies in pricing strategies.

Business Challenges

Stagnating Revenue Growth

The client faced flat revenue growth due to limited insights into competitor pricing and consumer behavior.

Inflationary Pressures

Rising input costs for raw materials, labor, and logistics squeezed profit margins.

Ineffective Promotional Strategies

Heavy reliance on discounts and limited-time promotions often eroded profitability without driving sustained sales growth.

Lack of Granular Pricing Data

Insufficient visibility into real-time in-store prices, competitor benchmarks, and customer price sensitivity hampered effective decision-making.

Dynamic Consumer Preferences

Changing consumer demands for affordability and value made it challenging to maintain pricing relevance across diverse sales channels.

Solutions

Competitor Pricing Analysis

Real-time monitoring of competitor price points was implemented to identify gaps and opportunities for strategic adjustments.

Proprietary Data Collection Tools

Advanced tools were used to gather billions of pricing data points from Point-of-Sale (PoS) systems, enabling a robust understanding of limited-time price reductions and historical sales trends.

Consumer Price Sensitivity Insights

Surveys, interviews, and transaction data analysis provided actionable insights into how customers respond to price changes.

Dynamic Pricing Framework

A flexible pricing model was developed that allowed the marketing and accounting teams to adjust prices dynamically based on market conditions.

Enhanced Promotional Strategies

Optimized promotional campaigns were designed to balance customer acquisition with profitability goals.

Qualitative Data Integration

First-hand observations and qualitative customer feedback were incorporated into the pricing strategy for a holistic approach.

Business Impact

Revenue Growth Resurgence

Improved pricing strategies led to a noticeable increase in revenue across all key sales channels.

Profitability Boost

Margins improved significantly as optimized pricing reduced reliance on deep discounts while maintaining customer loyalty.

Real-Time Decision-Making

The integration of real-time competitor data enabled swift adjustments that kept the client competitive in a volatile market.

Customer Satisfaction

Tailored pricing strategies aligned with consumer expectations enhanced brand perception and loyalty.

Operational Efficiency

Streamlined processes for gathering and analyzing data reduced time-to-market for pricing adjustments.

Conclusion

By leveraging advanced CPG market research techniques, the client successfully addressed its pricing challenges, achieving both revenue growth and improved profitability. This case underscores the critical role of granular data insights in navigating complex market dynamics.