Innovative Analytix - Price and Promotion Optimization services - mrk down

By: Innovative Analytix  09-12-2011
Keywords: Pricing Strategy, Demand Forecasting, Optimal Pricing,

Retailers hate markdowns. Discount an item too late, and stores are stuck with truckloads of inventory. Too early, and they lose profits as people snap up items thrown on the bargain table prematurely.

- Wall Street Journal.

Seasonal products pose a unique problem : A limited selling season during which profits must be maximized while residual inventory minimized. When demand falls below forecasts, markdowns must be employed to keep the inventory moving.

Markdowns have become an increasingly complicated problem - now representing up to 40% of total sales in the retail sector. Correctly determining when and how deep to discount can make the difference of millions of dollars to the bottom line. However, manually evaluating the right price to charge in particular stores with differing inventory positions and demand becomes a virtually unmanageable problem for any retailer.

IA Markdown Optimizer© can help. Markdown Optimizer automatically determines the right price to charge for every SKU in every store you have. Markdown optimizer firstly utilizes historic POS data to forecast SKU-demand. IA's proprietary optimization engine then determines the optimal pricing strategy to follow given the inventory position and the remaining time left in selling season. Markdown optimizer will ensure that you maximize your profits while minimizing your residual inventory for seasonal products.

Key Features:

Sophisticated Forecasting - Markdown Optimizer uses IA's proven demand forecasting engine which accurately predicts the price and promotional responsiveness of every SKU in every store you have. In addition forecasts are continually adjusted as sales figures come in, thereby ensuring the markdown profile matches actual demand.

Scenario Analysis - Markdown Optimizer gives you the flexibility to perform optimization under differing demand and competitive scenarios.

Inventory Optimization - Determining the amount to buy before the selling season is as crucial as determining the optimal markdown schedule. Markdown Optimizer uses historic category trends to optimize opening inventory by SKU.


Keywords: Demand Forecasting, Optimal Pricing, Pricing Strategy,

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