Price & Promotions
Price is a retailer’s biggest margin lever yet the potential for getting price wrong has increased exponentially. Raised shopper price sensitivity, price transparency and competitive pricing wars have led to margin erosion. Such circumstances have incentivized retailers to take a more disciplined approach toward price and promotions management. Artificial Intelligence (AI) technology delivers pricing strategies reflecting actual demand and real-time competitive positions – unlocking insights hidden in your data.
- Improved transparency and streamlined processes
- Improved margins
- Eliminate costly mistakes through price simulation
- Price management at store-level
- Increased flexibility and responsiveness
Most of the time promotions do not deliver a desired effect. Therefore, it has become one of the biggest challenges for every retailer to win the battle for brand image and consumer loyalty, without getting into a downward spiral of decreased margins and sales. Break that cycle using prescriptive analytics that focus on consumer buying influences, forecast demand, and deliver the best promotions to meet your strategic goals. Leading-edge science uncovers consumer shopping patterns, vehicle impact, cross-item effects, and vendor influence, empowering you to promote your desired outcome.
- Increased sales and decreased excess stock
- Ensure targeted promotional offer
- Monitor competitors’ promotional activity
- Simulate most strategic promotions
- Maximize marketing investments and promotional spend
In reality, plans are rarely 100% accurate, prompting retailers to turn to markdowns, at least for some products in some stores. At the same time customers love discounts, but you also need a profitable outcome. Crafting meaningful markdowns that maximize return on inventory, margins and sell-through while delivering the discounts that customers want, where they want them, and when they want them is key. In fact markdowns represent an essential component of a retailer’s pricing strategy and brand communication.
- Maximize return on inventory, margins and sell-through
- Localized markdowns at any level
- Incorporate vendor funds and promotions
- Accurate forecast on financial targets
- Measure ongoing effectiveness and adapt to trends on-the-fly
Ready Making the Store Matter Again?
We at Strategix have helped leading retailers and CPG manufacturers find the right set of tools
and bring them up to speed in order to meet consumer requirement in the digital age.