Price & Promotion Optimisation

Retail Express Stand: 5G20

Maximise the overall profit, margin or contribution of a portfolio of products, optimise regular and promotional prices, separately or concurrently and on demand, taking the effects of each other into account.

10-30% Increase in Profitability
5-10% Increase in sales
1-3% Increase in gross margins

RE 2.0 Provides the operational aspects of managing, recording and delivering advertising, marketing, pricing, promotions, and assortment and forecasts for merchandising and the wider supply chain.  

Retail Express price optimisation delivers profits today and is fully integrated with our everyday price and promotion management modules, resolving conflicts and constraints within a single strategic pricing solution. The price optimisation module enables you to maximise the overall profit, margin or contribution of a portfolio of products. Unlike other revenue optimisation products, we can optimise regular and promotional prices, separately or concurrently and on demand, taking the effects of each other into account.

The solution supports Hi-Low, EDLP, Value or a mix of those strategies through line item, brand, supplier, competitor and category rules and differentials mixed with performance targets. The solution supports the creation of differentials between the retailer’s individual product prices and those of its key competitors to ensure effective price positioning in the marketplace and to deliver a clear pricing strategy; the solution also provides differentials between the sizes of individual products (100g/200g/300g) and between individual brands.

The retailer drives the optimisation technology by setting goals and objectives in terms of sales, profits and unit volumes with the opportunity to limit those elements with constraints against each of the others, such that if the goal is the increase in profits, a sales and or volume constraint could be put in place to ensure the profit increase was constrained by a minimum level of sales and volume, thus ensuring balance is kept across the product portfolio.

The creation of rules for competitor brands and size can be in conflict and this can be further complicated by imposing performance goals and objectives, however, the Retail Express solution has conflict rules management software which allows the application to resolve conflicts on a prioritised basis in a sequence pre-approved by the user.

The Optimisation process produces prices out over a number of future weeks, often the length of the known promotion program and provides a summary forecast of the whole optimisation period in terms of sales profits and volumes shown against a forecast of what would happen in a non-optimised environment. In addition, a weekly breakdown is provided showing individual price changes up and down resulting from the optimisation and shown against competitor prices.

Retail Express provides both a SaaS and behind-the-firewall capability for optimisation and the solution is fully real-time, thus on demand optimisations can be a standard part of the pricing lifecycle management process.

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