IAs Trade Optimizer© maximizes the return from your trade
IAs trade optimizer determines the optimal promotion calendar
for each SKU in the category. Outputs include the optimal
frequency and depth of discounts, as well as the optimal frequency
of displays and feature ads by retail account. Because the
optimization is designed to generate a win-win situation for
both the CPG manufacturer and the retail account, the application
acts as a critical negotiating tool for CPG manufactures.
Category and Brand Managers are constantly facing the following
- What is the optimal depth and frequency of discounts for
each of the SKU's in my portfolio?
- Which of my SKUs should be EDLP versus Hi-Lo?
- What is the optimal frequency of feature ads and displays?
The IA Trade Optimizer leverages the full power of your syndicate
data, taking into account demand elasticity, retailer pass-through
behaviour, incremental lifts, stock-piling, and competitor
promotion profiles, to generate SKU-specific recommendations
for all of the above questions.
Trade optimizer generates an optimal promotional calendar
that includes the following recommendations by SKU:
Category managers have the option of deciding whether their
SKUs should be priced as EDLP (Every-Day-Low Price) or Hi-Lo.
Trade Optimizer tells the category manager whether a SKU would
benefit from having a Hi-Lo pricing structure or whether it
should be EDLP.
If a SKU is to be priced Hi-Lo, category managers have to
decide how to discount their products. Two variables are available
with regard to discounting- frequency and depth.Trade Optimizer
tells the category manger how the optimal frequency and depth
of discounts by SKU.
Display & Feature Strategy
Trade optimizer also outputs the optimal frequency of display
and feature ADs by SKU.