Uniform Game

Price elasticity is the economic framework that determines success in the Uniform Game, where companies such as consumer goods companies and retailers manage uniform prices. Price elasticity is applicable and insightful in markets with a very large number of buyers, relatively homogenous needs, and numerous comparable sellers.

Your path to growth in the Uniform Game depends on:

• Understanding elasticities in a very granular way: Product substitutes, household budgets, differentiation, and relative market shares can all influence price elasticity calculations.
• Applying the right price elasticities: Set and change prices by using everyday, promoted, and cross elasticities to model the impact of potential price changes.
• Optimizing the profit function: Knowing the shape of your profit curve and finding your profit‐maximizing price point is essential for understanding the financial consequences of pricing decisions.

Finally, successful players differentiate how they share value. They share more on key value items (KVIs), establish pricing zones by geography and channel, and target specific customer segments with promotions.