Merchandising

The marketplace has changed dramatically with intense competition from existing and new competitors as well as direct sourcing in producer markets (Alibaba). Accompanying these changes modern shoppers are increasingly price-conscious, informed and can rapidly change their buying behavior.

Our analytical tools and consulting services create winning strategies across assortment, merchandising, promotions and price, allowing you to make better, faster decisions. Let us show you how to optimize your merchandising by linking consumer and purchase behavior data. We help:

  • Determine the optimal product assortment that drives category value and profitability
  • Maximize the impact of your promotions through analytics and tools that optimize products, pricing, customer targets and media mix for your promotions
  • Find prices that over time yield maximum revenues

This requires deep insights on what customers want and like as well as having the right products at right price points.

Our state-of-the-art analytics enable companies to get the most out of their data to identify gaps and opportunities, and implement winning strategies.

Category Management

Category management, the concept of managing categories as strategic business units, plays a key role in retail success. Category management is all about satisfying customer requirements and profitably.

  • Define Category Roles (Destination, Routine, Seasonal, Convenience)
  • Devise Category Strategies (e.g. Traffic, Revenue Building, Margin Generating, Protect Market Share, Create Image & Excitement)
  • Category Management
    • add or delist products / right category depth and width
    • right prices
    • right promotions
  • Category Control
  • Incremental product contribution
  • Gross margins to include customer specific insights (activation, basket size, loyalty)
  • Substituted SKUs along products, brands, package sizes and varieties

Assortment Planning

We help retailers to eliminate unprofitable SKUs, while focusing on the right product mix to grow category profitability and sales. We deliver an analytic approach that leverages our proprietary SKU profitability methodology, comprehensive data analytics and experienced merchant perspectives.

Product Performance Analysis

  • Sales and profit contribution of each brand and SKU on the category
  • Pull-through analysis
  • Cannibalization effects (brands or package sizes)
  • Effects of new and discontinued Items
  • Demand for merchandise by channel
  • Demand differences in new and existing customers segments

Market Basket Analysis

  • Product affinities
  • Basket ratio of promoted versus everyday priced products
  • Promotional cannibalization on categories

Promotion Planning & Management

Retailers need the right know-how to plan and implement profitable and profitable promotions. Managers should have a clear view of how each type of promotion performed in the past and with which customer segment to make better budget investments decisions in the future.

We support retailers with the required analytics to plan, execute and measure the exact impact of each and every promotion.

  • Promotion Planning
    • Promotional objectives
    • Targeting
    • Overall planning
  • Promotion Analysis
    • Deep understanding of the promotion effectiveness
    • Standards and guidelines
  • Promotion Execution
    • Placement
    • Personalization
    • Structured tests
  • Promotion Impact
    • Monitoring
    • Assessment & control of ongoing actions

Pricing Insights & Optimization

Price continues to play a significant role in determining when and where consumers buy. Knowing how your customers will respond to pricing and promotions is essential to improving your bottom line and solidifying your price image with the customers that matter most.

We provide you with invaluable what-if insights and scenarios that enable effective pricing strategies and tactics. Set optimal prices to maximize revenue and profit objectives with your constraints:

  • Model pricing and promotions across all customer groups
  • Establish the most desirable timing and level of markdowns
  • Create and implement competitive price strategies
  • Use rules-based-pricing to provide pre-defined responses to changing costs or competitive conditions
  • Understand the impact of cannibalization and category cross-effects