Price | 
Food | 
Global
This global food and snack producer specializes in breakfast items, cereals, and on-the-go snacks.
Its iconic product lines have become a staple in households worldwide, with net sales of $10
billion in 2023.
With the announcement of a new 2025 EPR tax, the company looked to Buynomics to alleviate its expected economic pressure.
The manufacturer was looking to uncover additional revenue by using both the pricing and promotion levers to avoid the negative effects of the new EPR tax.
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A new Extended Producer Responsibility (EPR) tax was introduced in 2025 in the UK. It affects all packaged products. The tax rate depends on the product’s recyclability. |
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The manufacturer anticipated that the new tax would increase the company's expenses and sought ways to offset the impact. |
With Buynomics software, the Revenue Growth Management (RGM) team simulated different pricing and promotion scenarios to evaluate how each strategy might affect revenue and market share at both the product and category levels. They also forecasted potential competitor actions alongside theirs to understand the full impact.
Strategies Tested
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ResultsThe manufacturer set a linear 5% price increase for products with the most inelastic profiles. By targeting items with low price elasticity, where consumers are less sensitive to price changes, the strategy ensured that sales volumes remained high while profit margins improved. For the more elastic profiles, a high-low promotion strategy was applied. The manufacturer set a 30% promotional depth every three weeks. This ensured the promotional effects would keep and attract price-sensitive consumers while maintaining a balance between sales volume and revenue. |
With the Buynomics software, the team was able to model a price increase and different promotion strategies holistically, benchmark their performances alongside competitor moves, and make data-based decisions.
£2,5 MillionRevenue uplift potential was identified to mitigate the negative effects of the new EPR tax in the UK. |
