Evaluate prices and trade promotion calendars
Traditional trade promotion planning relies on year-over-year comparisons, domain knowledge, and intuition. However, it provides very few guarantees with regard to the optimality of decisions. Predictive modeling provides more formal guarantees for price and trade promotion optimality, boosts financial outcomes, and streamlines the work process.
AUTOMATIC DATA DRIVEN OPTIMIZATION
Find new promotion opportunities
Predictive analytics can help not only with optimizing existing trade promotions but also with discovering completely new opportunities that are impossible to spot using traditional methods. Our solution can generate and analyze millions promotional scenarios and can identify the options with the best performance.
Personalize offers and trade promotions
Targeting and personalization can greatly improve the efficiency of offers and promotions. Our promotion management solutions can automatically determine the optimal audience, communication time, communication channel, and other parameters for each offer in real time. This enables in-session promotion personalization on ecommerce websites and real-time basket-based personalization at point of sales in retail stores. Up-selling has proved to be a business sales booster, and we can ensure the consumer gets the correct products based on the previous sales data that our TPO system collects.
Optimize offers in real time
Our AI-powered promotion optimization components dynamically personalize offers and promotions based on the customer profile, current web session, channel, and other factors. Real-time offer optimization based on price sensitivity and cart abandonment propensity greatly helps to improve conversion rates.
EXPLAINABILITY AND DIAGNOSTICS
Understand what drives sales
Our solutions for trade promotion optimization are based on complex forecasting models, but they provide comprehensive diagnostics information for business users. This information helps to understand the key factors that stand behind successful promotion campaigns. Examples of the factors that are typically estimated include in-category cannibalization, cross-category cannibalization, and pull-forward effects.
FINANCE & INSURANCE
How our trade promotion solutions work
We develop trade promotion optimization solutions for customers from many B2B and B2C industries including retail, manufacturing, CPG, and video games
For retail customers, we create trade promotion optimization solutions that analyze promotion calendars, detect promotions that drive negative profits and need to be turned off, identify new promotion opportunities, and maximize the overall performance of a promotion calendar. The retailers we work with have a proven track record of optimizing promotion strategies using our TPO.
Manufacturing and CPG
Our decision support tools help manufacturers to optimize their B2B trade promotion planning and execution, ensure trade promotion consistency across retail partners, and directly integrate with digital channels and marketplaces such as Amazon.
We help technology companies and video game publishers to understand their markets and the structure of the demand to optimize prices and promotions. We have extensive experience in handling international sales data and implementing trade promotion optimization for multiple countries, which is typically the case for technology and video game companies.
A guide to dynamic pricing algorithms
This article is a deep dive into dynamic pricing algorithms that use reinforcement learning and Bayesian inference ideas and that were tested at scale by companies such as Walmart and Groupon. We focus on the engineering aspects through code snippets and numerical examples; the theoretical details can be found in the referenced articles.
Retail price modeling for replenishable and seasonal products
In this article, we discuss the common process by which retailers set their pricing, the challenges that they are facing in the area of price and promotion management, and how they incorporate big data analytics and machine learning into their pricing strategy to achieve stable growth and competitive advantage. This article can be used as a blueprint for trade promotion optimization processes and solutions.
Predictive analytics for promotion and price optimization
This article describes a reference implementation of a price and revenue management tool that showcases the main capabilities of AI-based price optimization software and features several advanced techniques. We start with a strategic vision of a price analytics solution, then build a demand model, and finally develop a fully automated optimization application.
Accelerate the Journey to AI
We provide flexible engagement options to design and build your own trade promotion management solution. Contact us today to start with a workshop, discovery, or proof-of-concept (POC).
We offer free half-day workshops with our top experts in price management and data science to discuss your pricing strategy, competition, profit margins, and opportunities for trade promotion optimization.
Proof of concept
If you have already identified a specific use case that can be solved using data science or automated price management, we usually can start with a 4–8-week proof-of-concept project to deliver improvements and tangible results.
If you are in the stage of requirements analysis and strategy development, we can start with a 2–3 week discovery phase to identify the correct use cases for price and promotion optimization, design your solution or product using industry best practices, and build a roadmap.
More enterprise AI solutions
Get in touch
We'd love to hear from you. Please provide us with your preferred contact method so we can be sure to reach you.
Thank you for getting in touch with Grid Dynamics!
Your inquiry will be directed to the appropriate team and we will get back to you as soon as possible.
Something went wrong...
There are possible difficulties with connection or other issues.
Please try again after some time.