"It's clear that retail customers value promotions, but many offers are too complicated and don't work for shoppers in the right way," said Tesco U.K. commercial director John Scouler. "With the forecasting and analytics capabilities available in PriceStrat, we can understand – based on what our customers tell us – where it's most important to offer promotions or reduce prices. We will continue to rely on PriceStrat to help us provide shoppers with stable, logical and competitive pricing, as well as the most compelling offers possible."
The PriceStrat solution provides merchandising teams with highly accurate forecasts and gives retailers like Tesco real-time insights on shoppers' responses to different promotional offers. Through "what-if" scenario planning, managers can now test various offer mechanics and variables, as well as display and space options, before promotions are live. Promotions can also be tailored by store type and geography to maximize relevance. By implementing PriceStrat, Tesco has been able to:
- Empower category management and merchandising with tools to accurately predict the impact of different promotion options in advance
- Provide buyers with the data and visibility needed to collaborate with manufacturers and vendors and model better promotions for shoppers
- Identify new promotional opportunities based on price elasticity modeling and reveal category cross-effects and product cannibalization
- Reduce the presence of pricing logic errors in the stores by automating enforcement of advanced pricing rules
- Improve customer price image measures both in-store and online by delivering consistently better promotional pricing matched closely to customer behavior