Price Elasticity Study

Working with the Mexican division of a major global consumer package goods company, a study was conducted to better understand the ROI on marketing spending, coupled with a price elasticity study in a product category where the firm had several leading brands. Besides helping shift consumer and trade spending to brands and programs that delivered a significantly better ROI, the price elasticity study was quickly utilized when there was a major increase in commodity costs. Using the data and incorporating it into a proprietary model, the company revised their previously devised pricing plans resulting in a 20 improvement in profitability versus the annual plan.