The project team developed a proof-of-concept pricing model to suggest optimal pricing

The task of the project team developed a proof-of-concept pricing model that utilizes historical sales data to suggest optimal pricing. The team comprised Nikolai Andriakov (Master’s Programme in Information and Service Management) and Daud Abucar (Master’s Programme in Mathematics and Operations Research). The academic supervision was provided by Professor of Practice Antti Vassinen from Aalto University School of Business, while Johanna Vartiainen, Development director at Alma Media, guided the project from the industry perspective. 

Addressing pricing inefficiencies in digital products 

The project aimed to tackle the challenge of product pricing. The project sought to introduce a data-driven method for setting prices, ensuring that they were optimized to balance customer willingness to pay and maximum revenue generation.

The team applied principles of pricing theory alongside statistical analysis and data science techniques to develop the pricing model. The model evaluates historical sales data to determine optimal price points. This approach ensures a structured and scalable pricing process, eliminating inefficiencies caused by manual decision-making.

Key findings and strategic recommendations

Through their analysis, the team identified instances where some products were underperforming in terms of revenue generation. Although these were outside the primary scope of the project, the team recommended that Alma Media further investigates these cases to uncover potential underlying issues.

‘The main outcome of the project was a proof-of-concept pricing model handed over to Alma Media. The model not only provides pricing suggestions based on historical data but also serves as a foundation for potential automation of the pricing process. This structured approach enables Alma Media to improve pricing efficiency and revenue predictability’, students say.

The project was a success 

Johanna Vartiainen from Alma Media was highly delighted with the quality of the project. ‘Pricing is a key area of ​​business, and its development requires continuous analysis and deepening of understanding. The collaboration with Aalto University provided a valuable opportunity to examine the topic from a new perspective, based on data, and to deepen our understanding of key issues.’

‘The students quickly grasped the subject matter and were able to independently define and analyze key issues. The insights they produced were well-structured and offered new insights into the theme. In addition, the collaboration was smooth and rewarding. We will utilize the results of the project in long-term development work. The information obtained will help us in choosing strategic policies and further strengthen key areas of the business, promoting growth,’ Johanna Vartiainen says.

Learning experience in a real-world business setting

For the students, the project was an opportunity to apply academic learning in a real-world business setting. ‘This project was the key experience that contributed to my success, helping me reach the final interview round for a pricing job after the project,’ Nikolai Andriakov says.

Daud Abucar emphasized the technical challenges and learning opportunities. ‘One of the key challenges was working with raw data and transforming it into practical insights. But it was rewarding to see how data-driven solutions can support business strategy.’

‘The students took on a complex challenge and a heavy data set. They successfully applied relevant mathematical and analytical concepts to tackle a very concrete pricing analysis. Nikolai and Daud worked closely with Alma Media – and it shows. The final report directly addressed business-critical questions and presents a well-reasoned foundation for further analysis and business development,’ says Professor of Practice Antti Vassinen.