The software, priceQED, analyses the effect of price changes on the entire category, as well as on individual SKUs.

The company said brand owners and retailers could use the tool to simulate different price scenarios and forecast their impact on sales and profitability, offering greater visibility and understanding of price sensitivity, and the likelihood that shoppers will switch to or away from rival brands as a result of a special offer or price increase.

PriceQED will also allows assortment decisions on which SKUs to carry or delist, based on the volume, sales and profit that are lost or gained by stocking a particular SKU.

The tool models sales volume against recent historical data, such as own price, price promotions, competitor prices and other factors such as seasonality, out of stocks and marketing distribution.

Glenn Granger, CEO, marketingQED commented: “PriceQED is the first tool to provide brand owners with such sophisticated pricing and assortment models that enable them to easily understand the impact of price promotions or delisting a product, not just on their own product and their closest rivals, but the entire category.”