Price optimization for a company in the retail sector

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varejo alimentício ()


Identify the best portfolio-level price combination for all products, with the goal of increasing profit margin. This is a complex task that requires a meticulous approach to balance pricing and demand.


The analysis focuses on selecting the prices of products in premium stores, located in luxury neighborhoods, belonging to a giant in the food retail industry. The choice of prices must reflect the exclusivity and quality of the products offered.


Price optimization is performed according to the market strategy, using a sophisticated causal model. This model combines demand forecasting with the estimation of cross-price elasticities, allowing for precise price adjustments to achieve the desired profit margin.


The successful implementation of this approach resulted in a significant 6% increase in profit margin compared to mirror stores. This result highlights the effectiveness of the strategy and the potential for application in other areas of the business.

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