Price Optimization

Interface with Master Data management
- Category Hierarchy
- Store Location
- Items
- Competitive
Interface with Transactional Data
- Stock Level
- Item Placement
  - BM Assortment
  - WEB Placement
- Location (BM & Web)
  - Price History
  - Sales History
- Competitive price
  - Industry Leader
  - Geo-Market leader
  - Category leader
- Set strategy simulation
  - Strategy Template
    - Market Penetration (new product or new market)
    - Demand stimulation timely Low Price (Dow/1^st few)
    - Psychological Pricing (rounding, size and parity)
    - Price or Loss Leader (well-known products)
    - Elasticity and complementary products (chips & salsa)
    - Captive products (COOS)
    - Geo-location and market localization
    - Forced Value Pricing (Extra stock or competitive pressure)
    - Forced Premium Pricing (low stock or competitive pressure or branding or size)
    - Promotion
      - On Demand
      - Pre-planned
      - Advertised
    - Seasonal items
      - Pre and In season
      - Out of season
    - Pricing Rules
      - Item Selection
        
        Item attributes
        
        Competitor attributes
        
        Price attributes
        
        Stock values
      - Set Constraints
        
        Price over Cost
        
        Price change Frequency
        
        Price Parity, Flavor, Size, Brand (national/store)
        
        Price Basket
      - Variable Calculation & Comparison
        
        Competitor
        
        Brands
        
        Parity, Flavor, Size, Brand
        
        Attributes
      - Price Change
        
        Margin (Allowable, MSRP)
        
        Position competitor (2^nd from top)
        
        Threshold pricing (allowable range or against history)
        
        Statistical (AVG, MAP, MCP…)
      - Merge and Conflict Resolution
        
        Duplicate Strategies
        
        Sales Ranking
      - Control/Limit Price
        
        Rounding (by channel)
        
        Parity (vs. another item)
        
        Size (vs. other size 16/32 oz)
        
        Basket (purchasing power)
        
        Against history, cost, MSFP
        
        Price Execution (number of price changes/week)
      - Price Optimization
        
        Trigger / Conditional / set frequency Exectuion
        
        Group selection with newly created price
        
        Set optimization value (minimum, maximum)
        
        Set constraints value
        
        Forecasting & Elasticity
        
        Compare strategy execution
        
        Select optimal group
        
        Execute optimal strategy
        
        Conflict Management (pricing, availability, weather, events, promotion)
        
        Location & Market Price diffusion
        
        Non execution Control percentage (no price change)
        
        Promotional material
        
        Product placement (BM and Web)

Used by:

Manufacturing
Wholesaler
Retailers
ECommerce