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Price and promotion optimization for FCMG


6 thoughts on “Price and promotion optimization for FCMG

  1. 4

    Excellent work team!
    The most difficult part of this challenge is to understand the data, create new features and rerun the predictive models till you achieve a good accuracy.
    As you may mentioned if you run a predictive model with the initial dataset you will get an extremely low modelling accuracy.

    I will vote based on the below criteria:
    1. business understanding
    2. feature engineering
    3. modelling accuracy
    4. insights & final results

    You achieved a good modeling accuracy and you created a number of new features based on your excellent understanding of the data and the business case.
    Moreover you visualized all the variable in a meaningful way and you took the right decisions on creating new features.

    You could further increase the accuracy of the model by implementing a better base price algorithm and by calculating the baseline volume in a better way.

  2. 1

    Not more to add after Agamemnon 🙂
    I also like your validation approach, keeping in mind the small number of data, also introducing different scenarios related to the forecasts.

  3. 0

    Questions during your presentation:
    1. @agamemnon
    What was the most challenging part of this analysis and how you came up with the elasticities at the end ?
    2. @mladensavov
    What is the explanatory power of your model? Could you quote the R value? How many explanatory variables did you eliminate to build the model?
    3. @tonypetrov
    Having too many variables in your model may impact performance. Did you take any measures to combat the potential slow down?

  4. 0

    Lot of work went in feature engineering which was too detailed. Final model looks incomplete from client perspective as I worked on price promo models for several retailers.
    Please keep include following variables in model
    primary – base price,promo price,all promo dummies,competitor price (for some) ,holidays,trend
    secondary – other variables which can improve model

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