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Price Pack Architecture Study (PPA)

PPA study helps to understand willingness-to-pay and pricing opportunities for different packs, sizes, ingredients/contents/features and thus suggests how to optimize the packs for Volume, Revenue and Profit.

PriceBeam Price Pack Architecture is part of the PriceBeam RGM360 Solution

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What Does a PPA Study Reveal?

The PPA study is designed to provide customer insights into consumers' willingness to pay, feature preferences, and potential cannibalization. This is achieved through customized, pre-defined PPA questionnaires to understand purchasing behaviors, including pack size, occasion, and channel preferences. Additionally, PriceBeam's Simulator tool tests various scenarios for deeper analysis.

  • What consumers are willing to pay.
  • Which product variations are most appealing.
  • Opportunities for new products or improvements.
  • Cannibalization between products.

Benefits of a PPA Study with PriceBeam

  • Understand WtP for both current products and potential new ones in one combined analysis.
  • Define optimal pack sizes, identify opportunities for introducing new packs, and determine the benefits of culling underperforming packs.
  • Use the PPA Simulator Tool to test different scenarios and make data-driven decisions.
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Challenges it Solves

 

Price Optimization Across Consumer Segments

Different consumer segments have varying willingness to pay. Pricing too high may alienate budget-conscious shoppers, while pricing too low may leave money on the table with premium buyers. A PPA study helps you identify optimal price points for each consumer segment.

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Price Elasticity and Sensitivity

Pricing a product without knowing how sensitive consumers are to price changes can lead to either reduced sales or missed profit opportunities. A PPA study identifies consumer price elasticity, enabling companies to set prices that optimize sales without sacrificing margins.

Cannibalization

Introducing new products or pack sizes can cannibalize sales of existing products, affecting overall profitability. Through a PPA study you can forecast the potential impact of new pack sizes or pricing changes on existing SKUs, allowing companies to make informed decisions and mitigate cannibalization risk.

Comparative study
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Aligning Pricing with Consumer Occasions and Needs

Consumers may buy the same product for different occasions (e.g., daily use vs. special occasions) but expect different price points and pack sizes to match their needs. PPA identifies how different occasions or usage contexts affect consumer price sensitivity and pack preferences, allowing companies to better align their offerings and be available at each occasion.

Who a PPA Study is for:

A Price Pack Architecture study is versatile and many departments can benefit from this study.

RGM:

Those working in revenue growth can utilize a PPA study for Willingness-to-Pay, portfolio optimization and segmented price optimization.

Innovation:

Those working within innovation can benefit from a PPA study for new products/features and portfolio optimization.

Marketing:

Those working in marketing can use a PPA study for Willingness-to-Pay and consumer preferences.

Industries that Benefit from PPA:

FMCGs/CPG

Beverages

Apparel

 

Cosmetics

 

Home Care

Food

Pet Food

 

Consumer Electronics

 

Veterinary Products 

 

Achieve your RGM goals

Holistic Approach to RGM

PriceBeam uses a holistic approach to achieve your revenue goals by integrating pricing, product, promotion, and various strategies across the organization to optimize all the factors that drive revenue growth. This approach provides users with a complete 360-degree view of revenue.


Advanced Insights

Leverage the power of data. Simplify data management with automated systems that load your data into a data repository, reducing manual input errors and increasing efficiency. Use world-class reports provided by PriceBeam experts to identify price opportunities or revenue issues.

Speedy Global Delivery

Results are available in as little as a day and never more than a few weeks, regardless of complexity. PriceBeam's cloud platform also delivers results 24/7 Globally in 127 markets.

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Let's get you started

Book a demo with one of our PriceBeam experts and discover our platform capabilities.

 

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Case studies

Learn how our customers were able to solve their pricing challenges and increase revenue.

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(LP) 5th Dec - Price Pack Architecture (PPA) 2.0

Webinar: PPA 2.0

Catch up on all our webinar on PPA 2.0 - Stop Shrinking to Glory. We explore PPA as a discipline in price optimization, which started as something akin to "shrinkflation": reduce the pack size but keep prices constant to improve margins. Now that no longer works, enter PPA 2.0.

Learn more