Price Column was missing and needed to be derived using Amount Sold and Units Sold column.My Target Product Style was "Brand T" with SKUs T1, T2, T3 and T4.A stock keeping unit (SKU) is a product and service identification code for a store or product, often displayed as a machine-readable bar code that helps track the item for inventory.Retailer had data for different Product Styles.Product Styles are basically different SKUs of a Brand / Product.I had data for a particular retailer (say Retailer 1).What is the impact of key competitor’s pricing on the target brand?.Is the price elasticity increasing or decreasing over time?.Create a robust imputation logic where price data is missing.To identify the pricing dynamics for a leading household cleaning supplies brand in US market. Using this information and the historical data, the next step is to predict or model the relationship between quantity and price and determine elasticity. We now know that elasticity tells us about how sensitive a product can be with respect to its own price or the relative price of another product. Own price elasticity: changes in demand of a single product due to its price.Ĭross price elasticity: with changes in demand of one product due to changes in price of another. Nevertheless we can distinguish two types of price elasticity: Select this option to use power regression. Logarithmic regression finds a logarithmic curve in the form of y (a ln(x)) + b that best fits the data, where a is the slope, b is the intercept and ln(x) is the natural logarithm of x. There are many determinant of elasticity. Select this option to use logarithmic regression. If the quantity purchased changes less than the price (say, 5%/10%), then the product is termed inelastic. If the change in quantity purchased is the same as the price change (say, 10%/10% = 1), the product is said to have unit (or unitary) price elastic. If the quantity purchased changes more than price change (say, 10%/5%), the product is termed elastic. The formula for calculating price elasticity of demand is: Price Elasticity is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price. Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price.īasically, it is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Let's begin with a quick overview on the concept of "Price Elasticity". Please Note: Due to Non Disclosure Agreement, I am using dummy variable names. Hoping to get some feedback/views on my attempt so that moving ahead I can improve on my technique and approach to solve business problems. I would like to share my work along with the insights which I was able to draw from the given data set. Recently, I worked on a Capstone project as a part of my Executive Program in Business Analytics offered by SDA Bocconi partnered by Jigsaw Academy.
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