Price Elasticity Analyzer
Rasa Beverages · Rasa Mango 330ml PET
Product
Rasa Mango 330ml PET
Primary Market
Market
South India
Market Type
Urban
Channel
Modern Trade + Q-Comm
Current Price
₹10
Optimal price identified for Rasa Mango 330ml
Volume remains broadly stable at ₹11, creating a significant revenue opportunity without additional promotion spend.
“You are currently underpriced by ₹1 per bottle.”
At ₹11, projected volume declines by only 1%, while annual revenue increases from ₹36.5 Cr to ₹39.7 Cr — +₹3.2 Cr annual revenue.
94% AI Confidence+₹0.0 Cr
Annual Revenue Opportunity
₹0 additional promotion spend
Current
₹10
Recommended
₹11
Expected volume
9,900/day
Price Increase vs. Promotion
Which creates more value?
Option A · 20% Promotion
- Price
- ₹10
- Promotion cost
- ₹74 L
- Expected volume
- 10,700/day
- Margin impact
- −₹6 L
- Additional spend
- ₹74 L
Option B · ₹11 Price Optimization
- Price
- ₹11
- Promotion cost
- ₹0
- Expected volume
- 9,900/day
- Margin impact
- +₹42 L
- Additional spend
- ₹0
Pricing up is more efficient than promoting down.
₹11 pricing preserves ~98% of current volume while eliminating promotion spend and improving contribution.
Price vs Volume
How consumer demand changes as price changes
Only ~1% volume decline vs. current price.
Drag to explore a price point
Active simulated price: ₹12 · drag the slider and simulate to update the full analysis.
Where Can We Move to ₹11?
Price elasticity varies by market. PromoIQ recommends a differentiated price strategy across Metro, Tier 1, Tier 2, Tier 3 and Rural.
₹12 Recommended
Example markets
Move Rasa Mango 330ml to ₹12.
Urban consumers show lower price sensitivity and stronger willingness to pay.
₹10 Recommended
Example markets
Maintain ₹10 price point.
Higher price sensitivity makes a ₹12 increase less attractive in these markets.
AI Regional Strategy
Do not apply a national price increase uniformly.
Move to ₹11 in Metro and Tier 1 markets. Hold at ₹10 in Rural and Tier 3 markets.
Why AI Thinks ₹11 Works
Signals behind the recommendation
18 months
Historical data
14
Historical price changes
₹11–₹13 range
Competitor pricing
Low sensitivity at ₹12
Price elasticity
Across comparable price changes, demand remained resilient within the ₹11–₹11 range.
Competitive Price Position
Masked market intelligence · Modern Trade + Quick Commerce · South India
₹10
Brand C Mango 300ml
₹11
Brand A Mango 330ml
₹12
Brand B Mango 330ml
₹13
Brand D Mango 330ml
Rasa is currently priced below comparable mango beverages.
At ₹11, Rasa remains within the competitive price band while improving value capture.
Based on syndicated market data + retailer pricing signals. Competitor names anonymised.
Price Scenarios
Three ways to price Rasa Mango in Bangalore
₹10
Current Price- Volume
- 10,000/day
- Revenue
- ₹36.5 Cr
- Margin
- 24.4%
- Status
- Current
₹11
Conservative- Volume
- 9,900/day
- Revenue
- ₹39.7 Cr
- Margin
- 25.3%
- Status
- Low risk
₹11
AI Recommended- Volume
- 9,900/day
- Revenue
- ₹39.7 Cr
- Margin
- 25.3%
- Status
- Optimal
₹14
Aggressive- Volume
- 8,000/day
- Revenue
- ₹40.9 Cr
- Margin
- 25.4%
- Status
- Volume Risk
What Happens to Revenue and Margin?
Price increases do not necessarily reduce commercial value.
At ₹10
₹8.9 Cr
Contribution margin
Margin 24.4%
At ₹11
₹10.1 Cr
Contribution margin
Margin 25.3%
+₹1.2 Cr vs today
At ₹14
₹10.4 Cr
Contribution margin
Margin 25.4%
Validate Before Full Rollout
Prove the ₹11 price point in a controlled market test.
01
Test
Run a controlled market test.
02
Monitor
PromoIQ monitors volume, revenue and margin.
03
Alert
If volume drops beyond the acceptable threshold, PromoIQ alerts the team.
Within 4 weeks, PromoIQ will identify whether ₹11 is holding volume as predicted.
Rasa Mango 330ml is currently priced at ₹10. PromoIQ recommends ₹11 for Metro and Tier 1 markets, where projected volume remains broadly stable at ~9,900 bottles/day.
At ₹11, annual revenue could increase by approximately ₹3.2 Cr without additional promotion spend. Rural and Tier 3 markets should remain at ₹10 due to higher price sensitivity.
Settings guardrail applied · Projected gross margin 25.3% is below your 35% minimum.
₹11
Recommended price
9,900
Expected daily volume
+₹3.2 Cr
Annual revenue opportunity