Case Study

We helped a major multinational drinks player optimise the price positioning of their global flagship brand in the UK off trade.

Client situation

  • Client had a stable of established Brands in the international drinks market
  • Key strength in Spirits
  • Flagship Brand had 3 variants with a “tiered” positioning (standard/ premium/super premium)
  • Category leader with combined 45% market share


  • Achieving monthly volume growth targets was proving difficult due to competitors tactical price discounting
  • Brand was losing volume share, and believed price reduction could be a powerful lever to improve results
  • As market leader the the client was concerned about overall value loss and wanted a 5-year price and promo strategy to optimise value
  • The client needed to understand and accurately predict the sales/share, volume and margin impacts of different options

What we did

  • Via multiple regression of all factors driving volume we identified the volume/price elasticities of the 3 variants
  • We optimised the price between the variants and the competition through understanding cross-price elasticity and price thresholds
  • We forecast the sales, volume and margin implications of different pricing scenarios
  • We built a simple Scenario Tool which allowed the client to ask “what if” questions and model the impact of multiple scenarios


Senior Sales management had the confidence to evaluate Price positioning options knowing their impacts

Versus the base scenario the “optimised” price and promotion strategy delivered a + 24% increase in brand contribution whilst retaining market share leadership

Next steps

Find out how we can help you measure the impact of your marketing