Iris Case Studies Data-Driven Pricing Strategy Transformation for a Global Restaurant Chain

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	Data-Driven Pricing Strategy Transformation for a Global Restaurant Chain Iris

Data-Driven Pricing Strategy Transformation for a Global Restaurant Chain

Iris

Applicable Functions	Product Research & Development
Challenge	The client, a leading global restaurant chain, was facing challenges with their traditional pricing strategy. Despite their success in managing menu prices through cost control measures, the rapidly growing business and changing market dynamics necessitated a more sophisticated and precise pricing strategy. The client had a wealth of customer data at their disposal, but they needed a solution that could effectively leverage this data. The desired solution needed to be data-driven and backed by robust pricing methodology and research. The client sought to gain impactful insights from both an internal and external pricing perspective. Read More
About Customer	The client is a leading global restaurant chain, renowned for its consistency. The business had been successful with their traditional pricing strategy, which was primarily based on cost control measures. However, with the business's growth and the changing market dynamics, the client sought a more sophisticated and precise pricing strategy. They had collected a wealth of customer data and wanted a solution that could effectively leverage this data to provide impactful insights and a robust pricing strategy. Read More
Solution	A four-step strategy was developed to address the client's needs. The first step was to identify alternatives, exploring different pricing strategies that could potentially be implemented. The second step involved conducting comprehensive research to understand the implications and effectiveness of each identified alternative. The third step was the development of the pricing strategy, using the insights gained from the research to create a data-driven and effective pricing model. The final step was the implementation and support of the chosen pricing strategy, ensuring that it was effectively integrated into the client's operations and that ongoing support was provided to ensure its success. This comprehensive approach allowed the client to capture significant pricing opportunities. Read More Log in to view content
Contents

Applicable Functions

Product Research & Development

Challenge

The client, a leading global restaurant chain, was facing challenges with their traditional pricing strategy. Despite their success in managing menu prices through cost control measures, the rapidly growing business and changing market dynamics necessitated a more sophisticated and precise pricing strategy. The client had a wealth of customer data at their disposal, but they needed a solution that could effectively leverage this data. The desired solution needed to be data-driven and backed by robust pricing methodology and research. The client sought to gain impactful insights from both an internal and external pricing perspective.

About Customer

The client is a leading global restaurant chain, renowned for its consistency. The business had been successful with their traditional pricing strategy, which was primarily based on cost control measures. However, with the business's growth and the changing market dynamics, the client sought a more sophisticated and precise pricing strategy. They had collected a wealth of customer data and wanted a solution that could effectively leverage this data to provide impactful insights and a robust pricing strategy.

Solution

A four-step strategy was developed to address the client's needs. The first step was to identify alternatives, exploring different pricing strategies that could potentially be implemented. The second step involved conducting comprehensive research to understand the implications and effectiveness of each identified alternative. The third step was the development of the pricing strategy, using the insights gained from the research to create a data-driven and effective pricing model. The final step was the implementation and support of the chosen pricing strategy, ensuring that it was effectively integrated into the client's operations and that ongoing support was provided to ensure its success. This comprehensive approach allowed the client to capture significant pricing opportunities.

Impact #1	The implementation of the new pricing strategy had a significant impact on the client's operations. The data-driven approach allowed the client to make informed pricing decisions, leading to increased confidence in setting future prices. The visibility of the effects of pricing decisions also provided valuable insights that could be used to further refine the pricing strategy. The client was able to exceed their sales growth targets, demonstrating the effectiveness of the new pricing strategy. Furthermore, the support provided throughout the implementation process ensured a smooth transition to the new pricing model, minimizing disruption to the client's operations.

Impact #1

The implementation of the new pricing strategy had a significant impact on the client's operations. The data-driven approach allowed the client to make informed pricing decisions, leading to increased confidence in setting future prices. The visibility of the effects of pricing decisions also provided valuable insights that could be used to further refine the pricing strategy. The client was able to exceed their sales growth targets, demonstrating the effectiveness of the new pricing strategy. Furthermore, the support provided throughout the implementation process ensured a smooth transition to the new pricing model, minimizing disruption to the client's operations.

Benefit #1	Captured over $10MM in pricing opportunities at the end of the 4-month project
Benefit #2	Exceeded sales growth targets
Benefit #3	Gained the ability to set future prices with confidence through visibility of the effects of pricing decisions

Benefit #1

Captured over $10MM in pricing opportunities at the end of the 4-month project

Benefit #2

Exceeded sales growth targets

Benefit #3

Gained the ability to set future prices with confidence through visibility of the effects of pricing decisions

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Overview

Data-Driven Pricing Strategy Transformation for a Global Restaurant Chain

Operational Impact

Quantitative Benefit