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Wise Athena

Wise Athena is a SaaS product that allows CPG companies to set the right price to its products, in order to maximise sales volume or market share. According to different studies, 67% of retail trade promotions fail. To tackle this issue, Madrid-and-Houston-based Wise Athena has developed a solution that allows CPGs brands to make the best pricing and trade promotion decisions.

“If a CPG company has 50 SKUs that are sold via five retailers and in five different countries, there are trillions of possible price combinations”, explains Alfonso Vazquez, co-founder and CEO of Wise Athena. “As a result, every promotional cycle is overwhelming and companies need full data science teams and econometrics experts to even begin to optimize their margins and sales volume”.

By applying machine learning, Wise Athena is able to achieve the following:

    • – Intelligently optimize pricing & trade promotions/li>
    • – Predict retailer sales for every SKU through simulations of different price points

– Determine impact of competitors prices in category volumes

The implementation of prices suggested by Wise Athena has enabled customers to increase margins between 3% and up to 12% per year

The right way for CPG companies to set their prices:

 

Pricing optimisation has a direct impact on companies’ margins and sales volume, and many of the larger brands in the world continue to make these decisions based on intuition and simply using Excel. With Wise Athena, a CPG company benefits from automatic selection of the data features that best describe the behavior of their products, even in relation to each other. Wise Athena then computes into the model cannibalization and cross-elasticity of the CPG company’s products automatically, and retrains their models every month, increasing prediction accuracy up to 94%.