As the cannabis market continues to mature, understanding pricing structure and your competition has become essential. With Panther’s Data as a Service (‘DaaS’), we can help fine tune your pricing strategy with key insights in your data while leveraging other data to fill in the gaps. 

Background

Panther worked with a premium-priced player in the edibles market in California and a top 5 spot in most anywhere else they sell. To date, they have focused most of their attention on gummy pricing. Their current framework intends to keep retail prices:

• No more than $2 higher than their competitor in California
• Approximately $2 lower than competitor nationwide in competitive, non-limited license markets

The company continues to test different promotional strategies but typically lacks the deep data and analytics to determine promo efficiency. As such, the primary sales utilized are:  

• Discounts 
• Buy-two-get-one (B2G1) specials

The Problem

As the rollout moves forward, critical areas of focus include: 

• Product Elasticity: Looking at product form and consistency, what is the flexibility of their products? Do the SKUs maintain the shape and form billed on their packaging and marketing? Will customers be pleased?

• Price Gaps, Sales Points & Market Share Acquisition: What are the price gaps to position their products alongside their competitors? How many more units would they sell if prices were to go down? 

• Promotions: Depth of discount and customer frequency are critical metrics. What are the right promotional strategies, and how do they change with price gaps? 

The Panther Solution

Our Goal: Enable the company to understand and make calculated decisions based on pricing, elasticity, and competitive analysis. 

The Approach: Empower the client to make actionable strategic decisions using: 

• Big Data methodologies
• Bayesian probabilistic analysis 
• ARIMA time-series analysis of client and proprietary data
• A series of levers based on the pricing and competitive analysis

The Process:

In order to help identify the ideal future state we:

• Interviews with the key factor employees
• Analyze dataset (B2C)  
• Analysis of the brand’s Wholesale B2B dataset 
• Analysis of Point of Sale data for brand and their competitors

Timeline: 4-6 week sprint

1. A weekly 30-minute call with the executive team. Calls consist of an initial onboarding and data gathering session. From there, weekly calls will focus on: 

• Week 1: An analysis of the current state
• Week 2: Identification of the ideal future state
• Week 3: Elasticity analysis
• Week 4: Deliverable of the competitive analysis and roadmap

Roadmap indicating: 

1. 1. A numerical output of demographic statistics for each archetype, including percentages of sales
   2. Demographic statistics for each archetype, providing a numerical breakdown of geographic centers, average age, favorite form factors and average AOV, all to 1 decimal place

The Results & Value

1. Rather than spending $650,000 to $950,000 on a team, Panther provides the same comprehensive service, support and analysis for a fraction of the cost.
2. Our recommendation will attribute over a million dollars in profit over the next 12 months. That’s 50x their investment with Panther.

Are you a cannabis company curious about how we can help you fine tune and find key insights in your data?

Let’s connect.

Companies, send us an email at [email protected].

Investors, reach out to [email protected]