Overview
Understanding how price influences demand across thousands of products.
A global retailer needed a more consistent way to understand how demand responds to price changes. Pricing and merchandising teams relied on manual analysis, with limited ability to account for the combined effects of promotions, inventory availability, seasonality, and product mix.
Fusemachines developed automated data and price elasticity pipelines that delivered historical insights directly into the retailer’s pricing dashboard, supporting product development, buying, and promotional decisions.
The challenge
Isolating the Effect of Price:Understanding price sensitivity required accounting for other influences on sales, including promotions, seasonal demand, and inventory availability.
Manual Analysis at Scale:Spreadsheet-based calculations were difficult to maintain across thousands of SKUs and multiple product categories.
Fragmented Data:Sales, product, traffic, and promotional data were distributed across systems and files, creating substantial preparation work.
Consistent Analysis Across Periods:Teams needed both monthly and quarterly views of price sensitivity to support different planning needs.
Changing Historical Data:Revisions to transaction records and product classifications could shift results between runs, making changes difficult to interpret.
Fuse solution
Automated Data Preparation:Built reusable pipelines to consolidate sales, pricing, promotions, inventory, and traffic data into consistent inputs for modeling and analysis.
Product-Level Elasticity Modeling:Developed statistical models to estimate how demand responds to price changes, producing insights at individual product and broader category levels.
Data and Model Monitoring:Established checks to flag significant changes in source data and model outputs, with automated notifications to support review.
Dashboard Integration:Connected elasticity estimates and historical data directly to existing pricing tools, making recurring results accessible to business teams.
The impact
Automated price elasticity analysis across thousands of products, giving teams a repeatable foundation for pricing decisions.
100% Automated Calculations:
Replaced manual Excel-based elasticity calculations with scheduled data processing and modeling pipelines.
Recurring Pricing Insights:
Delivered monthly and quarterly elasticity estimates to support buying, pricing, and promotional planning.
Better Visibility into Changes:
Flagged shifts in data and model outputs, helping teams distinguish changes in demand patterns from revisions to underlying records.
Scalable Analytics Foundation:
Created reusable pipelines designed to support expansion across additional product portfolios and markets.
