For every marketing team faced with margin pressures created by every organization’s current obsession with cost cutting, embracing a science and fact-based approach to pricing is the new normal. Brand/category managers are under tremendous pressure to make millions of accurate pricing decisions. Most of them either end up matching competition, underpricing or following the age-old practice of just marking up to get a certain margin percentage.
Industry leaders do not follow a one-price-fits-all strategy. They carefully alter pricing based on product lifecycle, competition, geography and strategic goals. Traditional rule-based solutions are inadequate in handling these decisions, which need the best of predictive analytics.
IA’s $urgent Price Management solution processes historical transactions datas, competition prices and other market and strategic signals to enable right pricing decisions. Key aspects of the solution are:
- Identification of and pricing recommendation generation for Key Value Items and Categories that drive maximum value perception
- Determine Price Elasticity at store-SKU level, enabling simulation of price change effects
- Price Optimization engine powered by advanced optimization techniques to generate price-change recommendations
- Markdown trajectory management to avoid marking down too soon, too much
- Testing suite enables accurate framing of price change experiments in smaller, low risk store-sets first and then rolling out across network with greater confidence
IA’s $urgent, is empowering brand and category custodians to win with pricing, every moment. A leading Fortune 500 retail client improved their top line by $19M via Impact Analytics’ price optimization efforts using $urgent by efficiently pricing it’s elastic and inelastic products.