Key Value Item Analysis

Which items are more or less sensitive to price changes?

Should I have a different price or promotional strategy for these items?

Retailers can leverage Revionics retail pricing science and strategy expertise to help identify and design Key Value Items (KVI) Groups.  A price sensitivity analysis utilizes demand intelligence to identify important and price sensitive items within a store, department, and category.  This analysis can help retailers maximize sales and profit opportunities based on the item's volume, price sensitivity, and elasticity.  With this service, Revionics is able to provide prioritized lists of both high-sensitive and low-sensitive items and their reaction to pricing adjustments for pricing and promotional decision making.

Items will be identified as candidates to go up or down in price based on their elasticity assessment.  The analysis is critical to grouping items into strategic roles at the item level for profit, traffic, or basket building. 

Retailer deliverables include:

• Item elasticity ranking by zone, store, department, or category.
• What retail price points maximize volume?
• What retail price points maximize dollars?
• How sensitive are consumers to price changes?
• What is the expected effect on sales dollars and volume if prices are higher or lower?
• Identification of insensitive items to price changes due to their role as a necessity
• What percentage of my total sales are derived from these demand groups?
• What is the impact to my margin mix and goals based on these demand groups?

Example of Demand Group Data:

Revionics Price Strategy Services information.