Promotion and Markdown Optimization Solution

RELEX’s promotion and markdown optimization software helps our customers choose the right products, at the right time, sell them at the right price, increase sales and get rid of excess stock – in short, we help them boost their bottom line.

Run promotions that deliver results

RELEX’s combination of outstanding computational power, intelligent algorithms and machine learning allows efficient and accurate planning, forecasting, fulfillment and analysis of promotions and markdowns. By replacing educated guesses with data-driven analysis, you’ll be able to run promotions that meet your business targets and provide high on-shelf availability without excess stock.

Elina Haavisto

“The way RELEX team listened to us and understood our needs was exceptional.”

Elina Haavisto
Head of Business Control and Planning, Lumene

Plan, forecast, execute and analyze promotions

Our promotion and markdown optimization software helps you plan a promotion while tracking its likely impact both on your business and your supply chain well in advance. We help you produce accurate promotions forecasts for each store or sales channel, and automatically manage stock before, during and after promotions. Our analytics let you to keep a close eye on performance.

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Promotion planning

Select the products, prices and promotion types that enable you to meet your targets for each promotion. Combine with promotional planogramming for an end-to-end process.

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Master data

Management of promotion data, such as timing, products and stores, promotion price and type, additional in-store displays, execution costs and support from supplier.

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Promotion forecasts

Using regression analysis, machine learning and all the available promotion data, our software produces accurate store or sales channel level promotion forecasts.

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Automatically identify products for which cannibalization has occurred and quantify its impact so that it can be accounted for when forecasting future campaigns.

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Promotion execution

Automatic allocation of stock before a promotion starts to fill store shelves and displays as well as replenishment based on sales and forecasts during the promotion.

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Analytics and KPIs

Day-by-day breakdown of sales and inventory or post-factum analysis of promotion metrics, such as return on investment and shelf availability, all available in the same system.

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Pro-actively identify products for which markdowns may be needed, such as overstocked seasonal items or short shelf-life products at risk of spoiling.

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Efficient markdowns

Choose the right level and timing of markdowns based on calculated price elasticity and ‘what-if’ analysis to instantly get a full view of the impact of your planned actions.

Highlighted features of RELEX’s promotion and markdown optimization software

Accurate forecasting of promotions using all relevant data

Retailers regularly flag promotion forecasting as one of their main planning challenges. Our promotion planning software uses regression analysis and machine learning to take all relevant data into account when calculating forecasts.

The impact of the price, promotion type, in-store displays, marketing activities and the timing of the promotion are analyzed separately to produce the most accurate forecasts possible per item, store/sales channel and day. This results in forecast accuracy up to 15 percent higher than with forecasting based solely on price or promotion type.

Efficient use of clearance markdowns

Sales of seasonal items can be heavily dependent on external factors, such as the weather. In many cases, commitments to stock have already been made a long time before the season starts, which means that retailers may need to resort to the judicious use of discounts to get the merchandise moving. Our markdown optimization software’s exception views highlight items requiring action based on, for example, high projected levels of end-of-season stock. Markdowns are optimized using information on category and product price elasticity.

Furthermore, the anticipated impact on sales in each store or sales channel can be examined using ‘what-if’ analysis. As the markdown plans are executed, concurrent monitoring allows quick identification of any deviation from the plans.

Automatic execution of promotion plans

Once a promotion has been planned, all the information you need for its execution will be available in one place. Our promotion optimization software allows you to tag all relevant data, such as off-shelf displays that will be used in the stores, the price discounts that will apply, and your proposed timings and quantities for stocking stores prior to the promotion. This data is then automatically used by the system to drive forecasting and replenishment.

Furthermore, the impact of the promotion plan on your whole supply chain is immediately visible, allowing you to identify potential capacity bottle necks such as in warehousing, picking or shelving, well in advance. Towards the end of the promotion, the software automatically ramps down replenishment as forecasted sales fall and additional in-store displays are removed.

Case studies

Booths, Britain’s leading regional supermarket, cuts spoilage by 20% in fresh cabinet items and improves the handling of promotions.

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Lumene, the leading manufacturer of skincare and cosmetic products in Finland, utilizes RELEX for more efficient and accurate promotion planning.

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Better data management has improved forecasting and control over promotions and seasons at the Swedish pet and gardening retail chain Granngården.

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Andrew Rafferty

“RELEX has not just given us the ability to factor the type of promotion (i.e. three for two) into forecasts but it does so on the basis of how that type of promotion has affected similar products.”

– Andrew Rafferty, IT and eCommerce Director, Booths

Would you like to know more?

We are happy to discuss your needs and challenges further, and show how promotion and markdown optimization would streamline your daily operations.

Contact us

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