Holding price against private label

Private label competition puts a brand in a bind: cut price and lose margin, hold price and lose share. Which is correct depends on elasticity, and elasticity is rarely uniform across a range.

The modelling estimated response by product tier, then tested how contribution moved under different scenarios rather than optimising to a single point.

The output was a segmentation rather than a price. Some tiers are defensible on brand and should hold; others compete on shelf price alone and should be managed for volume or exited.

Results

• Elasticity estimated per product tier
• Scenario testing on contribution rather than revenue
• Tier-level hold, fight or exit recommendations