DemandTec

Analytical Services for Retailers

Key Business Insights to Support and Refine Customer and Category Strategies

DemandTec's Analytical Insights and Solutions are packaged offerings that help retailers understand consumer demand at the customer, segment, and store level. This understanding and the resulting insights provide answers to key questions that help retailers shape their shopper and loyalty strategies as well as their pricing, promotion, and assortment decisions.

Delivered by a team of DemandTec consultants, Analytical Insights and Solutions supplement DemandTec's software services and leverage the demand, consumer, and market intelligence embedded in the DemandTec Platform.

These offerings have helped retailers around the world understand their business, their customers, and their market position. Working with DemandTec's experienced analysts and consultants, the retailers have identified opportunities to refine their strategy to be more in line with existing realities. With refined or existing strategies, the insights further support the appropriate execution tactics to achieve these strategies.

Analytic Solutions are tailored for the many realities of retail

DemandTec has developed five analytical offerings to address the many different questions retailers are asking:

Consumer Insights Basic: Products interact. Some products encourage consumers to buy other products – other products have no inter-relationships. DemandTec provides retailers with an in-depth view of customer baskets and item affinities that allows retailers to develop strategies to drive basket pull through.

Advanced Consumer Insights: Many retailers have an established customer segmentation scheme, but they don't know exactly how these segments differ in their response to changes in Price, Promotion, and Assortment. Retailers may also lack clear insight into the Known Value Items for each segment. By modeling demand at the segment level, DemandTec provides the retailers with answers to these complicated questions, resulting in clear plans designed to achieve the goals set for each segment and to ensure that the best segments continue to grow.

Strategic Pricing Assessment: Pricing is a powerful lever in the merchant's toolbox, however consumers respond differently to price changes for each product. The required gap between a retailer's price and the competitors' prices varies by product and by competitor. The highest selling items are not always the true Image items. There are many important tradeoffs between volume, revenue, image, and profit. The right price for your business varies based on your goals and how customers respond to changes in price. DemandTec's Strategic Pricing Assessment analyzes historical sales to understand how customers are responding to price changes and how the retailer is positioned relative to competition and the resulting market share. Recommendations include new image item lists, items requiring price decreases, items that would support increases in price.

Private Label Opportunity Assessment: A set of analyses that combine Nielsen data and DemandTec models to create deep understanding of Private Label performance and pricing opportunities to drive profitable Private Label growth for retailers

Store Cluster Analysis: Store zones or clusters are often based solely on demographic information and competitor proximity. Historically retailers have been unable to dedicate proper attention to the customer when determining zones. DemandTec's approach analyses category price sensitivity, store-level competitive intensity, demographics, and cost of living and to determine the most effective price zones.