DemandTec for Retail: Consumer-Centric Merchandising and MarketingThe DemandTec tool enables retailers to undertake some exceptionally complex analytics in a very simple to use environment. The tool basically enables the retailer to analyse a group of items in a category or sub-category and optimise on various key metrics to affect KPIs. The following lists a handful of the areas in which DemandTec can provide optimisation capabilities:
- Retail Price Optimisation - utilising the concept of price elasticity but not just at item level, across the assortment, DemandTec is able to propose the optimal price to affect targets such as margin improvement, sales velocity imrpovement etc.
- Promotion Optimisation - DemandTec can model the ideal price for promoted items to sell through within a given period etc. They can also model the impact of the promotion on other items in the assortment, to consider cannibalisation and halo effects.
- Assortment Optimisation - DemandTec can model the effect of adding SKUs / removing SKUs from an assortment in terms of what level of incremental sale or substitutional sale does each SKU offer within the range.
- Markdown Optimisation - using similar methods as the price and promotional optimisation DemandTec can ensure that the marked down price delivers sell through at the optimal margin yet at the optimal rate of sale to clear the product within a target timeframe.
DemandTec customers include more than 140 leading retail and consumer products manufacturers such as Advance Auto Parts, Best Buy, Circle K Stores, ConAgra Foods, Delhaize America, Dr Pepper Snapple Group, General Mills, Giant-Carlisle, H-E-B Grocery Co., Hormel Foods, Monoprix, Safeway and Sara Lee.
Connected via the DemandTec TradePoint Network, DemandTec customers have collaborated online on more than 1.8 million trade deals. For more information, please visit