DemandTec

Promotion Optimization

Optimize Promotions and Ad Placement to Execute More Profitable Promotion Plans

• Maximize the incremental lift and total store impact of every promotion
• Create category plans that achieve your objectives
• Review advanced “what-if” scenarios

Managing retail promotions is a complex process that involves both long-term planning cycles that can extend 12–18 months and short-term, day-to-day activities such as evaluating competing vendor deals for a given week. To be successful in these processes, retailers need to collaborate internally among senior management, category managers or merchants, and buyers, and collaborate externally with vendors to build promotion plans that provide win-win results.

Maximize the Incremental Lift and Total Store Impact of Every Promotion

Promotion Optimization leverages advanced Consumer Demand Management science to enable retailers to develop promotional offers and placement that maximize the total store impact on all categories. DemandTec science takes into account cannibalization, halo effects, and cross-elasticity effects of regular retail and markdown programs in place. With Promotion Optimization, retailers can quickly determine the best discounted price for any item or promoted item group; the best type of temporary price reduction, such as buy one get one, percent off, and multiples; and the best use of merchandising support, such as ads and displays, as well as specific placement within an ad, to maximize the incremental lift and total store impact of every promotion.

Retailers can also use Promotion Optimization in conjunction with DemandTec’s Deal Management software service to streamline the deal presentation, negotiation, and reconciliation process, and automatically retrieve deal information into Promotion Optimization for evaluation, thus allowing the retailer to develop alternate scenarios to see what would happen if the offer were changed. Merchants can compare multiple iterations of each promotion to identify the right combination of discount and merchandising support. Retailers can also analyze pull-through effects, cannibalization between promoted items and regularly priced items, cannibalization between stacked promotions, and the pantry-loading effects of successive promotions.

Create Category Plans That Achieve Your Objectives

With Promotion Optimization, retailers can view their category plans in a master calendar that provides a single, unified view of all planned events across categories, including an integrated forecast across all promotions as well as all pricing types. This integrated forecast can help retailers ensure their promotions will meet company goals. Retailers can then continually monitor and measure the results of events, weekly promotions, and partial-week promotions.

Promotion Optimization: Part of a Comprehensive Solution for Managing Lifecycle Pricing and End-to-End Promotions

Promotion Optimization is a software service in DemandTec End-to-End Promotion Management™, a solution that includes related software services that enable retailers to manage the complete promotion process. Promotion Optimization is also a key software service in DemandTec Lifecycle Price Optimization™, the industry’s only solution that enables retailers to price the entire store, including new items, regular retails, promoted items, and clearance items. All DemandTec software services reside on the DemandTec Platform and are accessed through a single, personalized portal.

Get Started Today

Are you ready deliver more effective promotions? Take the next step. For more information, call 1-650-645-7100 or request information online.