"What are the P&L ramifications of a price increase?"

"What is the optimal price for various brands within my categories?"

M-Factor’s P4 Portfolio Pricing Optimization solution delivers clear answers to questions such as these and provides deep insights into the impact of pricing on sales volume and profits. Specifically, P4 helps marketing executives and brand managers accomplish these critical functions:

• Optimize price changes by product and location
• Understand elasticity of each promoted product by channel and over time

The P4 Portfolio Pricing Optimization solution incorporates elements such as store locations, competition in the local market, portfolio mix and seasons into its pricing model to create an optimal pricing strategy across groups of stores, channels, products, and brands. Results are clearly presented in terms of a P&L statement that ensures important tradeoffs are made in the context of business and financial metrics. It also allows users to understand elasticity of each promoted product by channel and over time, where the results are presented as elasticity curves.

Highlights of P4 include:

• Side-by-side comparisons of a wide assortment of pricing plans for quick and easy selection of the best performing plans. Plans may be created at any level of product or market granularity and managed from the bottom up or top down.
• An automatic optimizer that develops and evaluates thousands of potential scenarios to recommend optimal portfolio pricing based on criteria specified.
• Dashboards and reports that deliver perspective on impact of pricing on sales and volume. Report types include:
• Price elasticity plots
• Scenario P&L comparison reports