Top Line:
A major paper goods manufacturer uses XP3 Suite to identify price elasticity, communicate increases to retail partners and track progress against goals.

Situation:
Recently, a major paper goods manufacturer came to Interactive Edge looking to automate the process associated with a retail price increase. This process consisted of three major components:

1. Identify price elasticity of various brands by geographic region
   
   
2. Communicate proposed price changes to retail partners, as well as expected results
   
   
3. Track retailer compliance and performance vs. goals

Goal:
Success in this project was defined as automatically generating presentations which applied internal warehouse and syndicated sales data to a price elasticity model, which had been developed by a supply chain management consulting group. These presentations were to accommodate eight brands across three product types and display information for the manufacturer's top 25 retail partners. After the initial deployment of these presentations, data updates were to occur at predetermined intervals to track compliance and performance at each retailer.

Action Taken:
Using its XP3 tool, Interactive Edge loaded and integrated the manufacturer's internal shipment data and syndicated sales data. This data was plotted applying factors determined in a study performed by a third party supply chain management consulting group. The resulting 'indifference curves' were used as a tool to estimate reasonable price thresholds for each of the manufacturer's retail partners.

Once the price increase was determined, the XP3 tool was used at retail to demonstrate sales potential across several different scenarios, gaining buy-in at the manufacturer's customers. Timing for targeted price increases were agreed upon at each of the organization's top retail partners.

Over the next few months, management at the organization used XP3 to track retailer compliance with the price increases. Comparisons were also drawn against sales goals determined by the elasticity model developed in the first phase of the project.

Key Benefits:

• Using XP3 Suite, the manufacturer was able to effectively implement a price increase across multiple product types at its top customers.
  
  
• The manufacturer was able to systematically recommend the proper pricing and track progress against goals, insuring profitability for both the organization and its retail partners.