PtG Price-Optimized Growth Calculator: Balancing Profit & Market Share for Emerging FMCG Brands
Douyin e-commerce and LIANWEI have combined customer consumption characteristics (purchasing power/price sensitivity/channel preference/usage scenarios) to launch a pricing strategy tool—Price to GMV model, which deeply integrates pricing strategy with customer insights to ensure customer experience while scientifically balancing profits and market share
Client Profile
This emerging colored contact lens brand focuses on providing fashionable, safe, and comfortable colored contact lens products for young people. In recent years, the brand has accelerated its offline expansion, entering chain pharmacies, optical stores and large - scale supermarkets, and offering professional fitting services. It has become one of the leading players in the domestic color contact lens market.
Needs and pain points
How to price reasonably to increase sales and achieve optimal overall profit?
Case Study
The PtG Volume-Price Model applies the Price Elasticity Model to quantify the relationship between a product’s sales volume & profit and its price, empowering brands to implement "scientific pricing". It requires two key capabilities:
Capability 1: Providing pricing and impact analysis: Quantifying the impact of prices on business and providing scientific pricing strategies;
Capability 2: Predicting the optimal pricing and its impact under given conditions: Based on daily sales/major promotions, different channels or genres, and targeting the goal of maximizing sales or profits, predict the optimal pricing and its effects under given conditions.
For different scenarios such as daily sales and major promotions, Lianwei focuses on analyzing the price impact of different formats such as live streaming, short videos, and gift cards to adapt to the various pricing needs of different merchants.
Project Value
The CRM system integrates data such as purchase frequency, price sensitivity, and channel preference to provide individual-level decision-making references for pricing models and predict optimal pricing and results.
We offer a PtG pricing growth calculation model to deeply analyze the impact of price changes on traffic and sales, and output pricing strategies that maximize profits. Through reasonable pricing strategies, we can enhance repeat purchase rates among existing customers, attract more new customers, and provide exclusive benefits to members.
Under different scenarios of daily sales and major promotions, we focus on analyzing the price impact of different content formats such as live streaming, short videos, and product cards. After precise price adjustments, traffic increased by over 30%, and GMV increased by over 30%, with the most significant increases observed in live streaming and gift cards.
