For many retailers promotions are the most important marketing activities they plan. Increase customer loyalty, attract new customers, create store traffic just to list a few things. But how to make sure that all of this happens really in the stores? As consumers we all know how disappointing it can be to come into a store and not to find what you are looking for. Maybe this particular store hadn’t even had enough space to get what would have been really needed. Maybe other products which are less important block the required space. But simply overstocking items cannot be the answer either when it comes to fresh food and the resulting waste and environmental damage.
Looking at this holistically, a planning process is needed that includes many facets. What is the anticipated customer demand – not only for promotion periods but also for regular replenishment. However often promo items are not carried continuously in the assortment which means that it is difficult to determine the correct quantity. And case this is a manual process also a very time-consuming activity. But would your planners trust some automatically calculated numbers?
What if there was a smart AI algorithm that could help to predict what is really needed? That would learn each day by looking what consumers bought and that would include many factors such as the different promotion tactics, price changes, along with general influences such as seasonal trend and so forth? Embedded in a promotion planning application but also available for other planning processes like replenishment?
Are you curious how this could work? Read in this business transformation story how COOP Switzerland is using intelligent technologies from SAP such as SAP Promotion Management and SAP Customer Activity Repository along with the Unified Demand Forecast application to optimize promotion planning to offer sustainable shopping and a better customer experience.