DemandTec Price Optimization

Make use of industry-leading optimization science.

• DemandTec Price Optimization allows you to set the right prices for the right products at the right time
• Makes use of one of the most advanced consumer demand management sciences in the industry
• Uses SKU-level modeling and optimization to capture the elasticity of each item, in addition to cannibalization, halo effects, cross-category pull-through effects, trends, seasonality and other causals to deliver a high level of accuracy

Simplify the pricing process.

• Using DemandTec Price Optimization, retailers are able to define and enforce their pricing policies by creating pricing scenarios with pricing rules selected from a comprehensive library
• Rules in this library, such as last digit-rules, competitive price index rules and cross-zone rules, can be easily configured by the merchant using natural language editing. Retailers can then prioritize these rules in their pricing scenarios in order of importance
• If conflicting rules make it impossible to calculate an optimized price scenario, IBM DemandTec’s proprietary rules relaxation capability allows retailers to review optimized price scenarios that conform to the retailer’s rules and goals

Determine different pricing strategies using what-if analysis to compare outcomes.

• Enables retailers to quickly create and evaluate multiple pricing scenarios to fine tune their pricing strategy before prices hit the shelves
• Provides the ability to create new “what-if” scenarios in order to change their goals (maximize profit, sales or unit volume) or add, remove, modify or reprioritize their pricing rules.
• DemandTec Price Optimization enables retailers to view a side-by-side comparison of different pricing scenarios and evaluate the predicted results at various levels, such as at the SKU, line or category level
• Achieve greater visibility into and control over marketing budgets and expenses and lower costs.