RGM Simulation
At the core of RGM Optimizer & Simulator is a full-category simulation solution, allowing users to analyze pricing, pack changes, consumer segments, and competitive moves all in one universal simulator.
Revenue Growth Management (RGM) Simulation
Simulation is a key module in our RGM Optimizer & Simulator, offering analysts the capability of simulating changes to pricing, packs, assortment or even competitors' moves. Based on AI-modelling of virtual shoppers, the simulation tool predicts how those virtual shoppers would react to market actions.
The benefits of RGM Simulation include:
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Informed Decision-Making: Better understanding of the potential impacts of different strategies allows for more informed decision-making.
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Risk Mitigation: Identifying potential risks and opportunities in advance helps in planning effective responses.
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Optimization: Continuous optimization of pricing, promotions, and product assortment leads to improved profitability and market share.
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Competitive Advantage: Staying ahead of competitors by anticipating their moves and planning proactive strategies.
how it works
PriceBeam's RGM Simulator used Artificial Intelligence (AI) modelling of Virtual Shoppers to replicate how consumers would react to different product options, prices, assortments, and competitive choices.
Simulation users can then simulate various market scenarios—like price adjustments or competitive responses—to visualize potential outcomes.
Based on these simulations, decisions can be refined, and strategies optimized in real-time, providing a continuous loop of feedback and improvement.
Pricing & Revenue Growth Challenges Solved
Strategic Pricing Decisions
Tackle complex pricing scenarios by simulating the impacts of different pricing strategies, with or without the presence of competitor movements.Simulating Price Changes
RGM simulation can model different pricing strategies to understand their impact on sales and profitability. This includes simulating how changing prices over time can affect demand and revenue, measuring how sensitive customer demand is to price changes, and finding the optimal price points to maximize profit or market share.
Simulating Assortment Scenarios
Assortment simulation helps in determining the best mix of products to offer. This involves Product Mix Analysis, i.e. evaluating which products should be included in the assortment based on sales data, profitability, and customer preferences.
Similarly, it supports Category Management decisions by understanding how different product categories interact and affect overall sales.
Forecasting Promotional Responses
Promotional simulation can forecast the effects of various promotional activities, such as discounts and offers, e.g. testing different discount levels and types of offers (e.g., buy-one-get-one-free) to see their impact on sales volume and profit margins.
Running What-If Scenarios on Competitors' Actions
Understanding and reacting to competitor actions is crucial for maintaining market position. RGM simulation can help with competitive pcricing such as analyzing how competitors' pricing strategies impact your market share and adjusting your prices accordingly.
Similarly, it can help simulating the impact of new competitors entering the market or existing ones exiting, or evaluating the potential impact of competitors launching new products and planning your response.
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