Model the impact of price changes and promotional activities on the overall demand
for a product at a very granular level with pricing optimization software. Leverage advanced AI & ML to calculate price elasticity for each of your products based on the price elasticity along with past promotional or price change events to accurately predict demand for any upcoming event. With Kronoscope, demand planners can add promotions, offer for specific events, festival offers individually or in bulk, thereby capturing data on impact SKU segment, event type, event treatment, and date range and engage in efficient promotion planning. Pricing and Promotions planning can be instrumental in the liquidation of low-demand products to free up working capital, increase revenue and reduce losses due to overstocking.
Further, the pricing optimization planning feature can help you determine the right price point for the SKUs/Categories that you could consider for discount/promotions. It’s done by setting your revenue goal along with margin constraints and the optimization engine will identify pricing scenarios that will maximize your chances of hitting your revenue goals. Powering the pricing optimization engine are price elasticity curves for every SKU and geography combination and the shape of the curve determines the sensitivity of any SKu towards price changes.. If the curve is flat it suggests that variation in price doesn’t affect the demand of the product, on the other hand a steeper curve suggests that the product is price sensitive & the demand will change when the price changes.
Understanding this at SKU and geography level empowers you to plan your discounts and optimize your margins. This helps you make most of your liquidations sales by determining the optimized price points for your SKUs.
The scenario planning feature helps with the pricing and launch strategy for the New Product Pricing. Determining the impact of price changes on new products and on products that have never seen any price changes can get really tricky. In order to understand the impact any changes in price on the demand in such a scenario can help businesses determine the optimal price point. Kronoscope uses a look alike based approach where the algorithms look for impact of price changes on other products under similar category to then use those learnings to estimate the impact for new
We help food businesses win without waste with AI powered inventory planning.