Build ``what-if`` scenarios to see projected benefit of future promotions.
Retalon accurately projects the effect of future events, even if they never occurred in the past.
Automatically generate additional store shipments to support future uplift in demand.
Account for local demographics when planning events.
Retalon's planning solution is powered by predictive analytics to provide accurate demand forecasts.
All Retalon solutions are fully integrated in a common predictive analytics platform.
Promotions do not necessarily happen at the same time each year. They may include different product assortment or locations. The media used in advertising is changing and the markdown offered to customers may fluctuate depending on the current situation. It is clear that one can’t expect the same promotional effect either. It would be great to have answers to the following questions:
• What makes promotions successful?
• Is it possible to predict the promotional effect of each media type?
• What is the optimal promotional product price?
• Which products to promote in what territory and when?
• How much stock is needed to meet the incremental demand of a promotional event?
Retalon’s Events & Promotions Module enables users to accurately forecast the effects of future promotions and other events. A promotional effect is accurately calculated using the price elasticity of demand approach and accounting for all influencing factors, such as price reduction, advertisement type, original price, product popularity, duration of the event, cannibalization, and many other factors.
A few things to consider in order to run successful events & promotions:
ANALYSIS OF PAST PROMOTIONAL ACTIVITIES
The first step toward execution of a successful promotion is to measure the effect of the past promotions. Retalon Predictive Analytics calculates the true effect of promotions, by measuring past sales data and removing the effects of all other influences, such as seasonality, regular sales forecast, inventory availability, assortment diversity, etc.
Retalon users get a unique ability to compare past promotions to the status quo (i.e. what would happen, if they did not run promotion) and therefor calculate the TRUE effect of these events.
On certain occasions retail organizations do not capture some of past promotional events. In some cases, past promotions are not properly recorded in the promotional calendar. In other cases, logged promotional events are not synchronized with time periods and do not reflect proper promo assortments. Frequently, promotional settings get modified during an event, further complicating the analysis of the promotion itself. These factors significantly may reduce one’s ability to calculate the true effect of past promotions.
Retalon’s Events & Promotions Module is a unique tool that allows recovering critical promotional statistics from regular sales and inventory data. Retalon identifies many past promotions omitted from records and restores missing promotional information.
REPLENISHING & ALLOCATING INVENTORY FOR PLANNED PROMOTIONS
Retalon’s Events & Promotions Module is integrated into Replenishment system. It calculates the necessary shipment quantities to satisfy the incremental consumers’ demand as a result of planned promotional activity. The calculations account for the available and effective inventory (at the time the promotion will have place), sales forecast, replenishment frequency, desire service level, and future shipments. User can specify (through a business rule) whether to add this additional quantity to regular shipments or build inventory gradually in several shipments.
Ability to collaborate with vendors on panned promotions; provide vendors with controlled by the retailer access and visibility on product promo and baseline forecasts, sales, inventory levels as well as provide vendors with the Promo Simulation tool to estimate the effect of the upcoming promotion and be prepared to its execution.
‘MOVING’ HOLIDAYS AND OTHER NON-PROMOTIONAL EVENTS
Easter represents a classic example of a ‘moving’ holiday, i.e. a holiday that happens in different fiscal week every year. Other examples would include Passover, Chinese New Year, etc. Each such holiday is an event that has its own attributes and Retalon treats them accordingly. The incremental demand is calculated based on the same holidays in the previous years, properly adjusted, and applied to the appropriate weeks in the upcoming year. Never miss your holiday demand again. The same relates to any events, configured in the Retalon system. A good example would be a Superbowl that happened in the past in one city and the next year in another city, and on different dates.