Optimization of the price/product portfolio



Since the sales expectations of a new product range could not be met, our long-term customer would like to investigate the performance of different shelf prices, package sizes and promotion measures.

The aim of the project is to obtain a reliable forecast of the success of a packaging and price adjustment or of newly developed promotional measures. Overall, the insights gained are to be used to optimize the existing price-product portfolio and to sustainably increase the sales of the product range.


Research Questions

  • What effect does a change in price have on sales?


  • What effect does a change in package size have?


  • What is the optimal promotional price for the new package size?


  • To what extent does a multibuy mechanism succeed in attracting new buyers to the brand?



In order to realistically measure the effects of the defined activities, we recommend a real life store test, including scanner data analysis, which was carried out in REWE stores. The stores were divided into structurally identical groups (one control and four test groups).


In one test group, a price promotion was tested for the packaging size, which was already listed. Two other test groups were used to measure the success of a new package size at two different price points. In another test group, a multibuy mechanism was tested on a secondary placement.


Analysis Approach:


  • Calculation of the net change in sales of each measure.
  • Verification of possible canibalization effects within the brand



The net change analysis shows that not all measures achieve the targets. Although sales and revenues are increasing in all test groups, there are strong performance differences. The multibuy mechanism achieves higher uplifts than the pure price activities.


Our customer could be shown concrete growth potentials for optimizing the sales of the product range. In particular, the potentially high investments in new package sizes could be identified as non-target.

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