Promotion Optimization


For any retailer the number of promotions can easily exceed over 1,000 each week and account for well over a third of all customers’ spend. It is imperative that the customer can rely on a store having the full promotion assortment available every time they visit.

Overview

Accounting for well over a third of all customers' spend promotions are proven in attracting new and retaining existing customers. The emphasis on endcaps varies dramatically from one store to the next, depending on consumer demand. Store specific promotion planograms present an opportunity to rapidly enhance the customer experience whilst increasing operational efficiencies and driving double digit sales improvements in store.

Most retailers simply don’t have the capacity or the technology to create localized promotion assortments and display planograms for every store. They use a generic promotion display planogram, which stores must manually adjust depending upon their size and location.

As a result, operational execution in store may decline when a balanced assortment and inventory cannot be achieved. This results in the full sales potential not being realized. It is imperative that the customer can rely on a store having the full promotion assortment available every time they visit.

 

  • Reduces in-store labor replenishment caused by less than case pack fill and/or days-of-supply achievement.
  • Maximizes promotion sales opportunity throughout the promotion timeline.
  • Minimizes end of promotion excess inventory upon exit.
  • Optimizes the process to support large scale promotion end planogram production on a short time cycle.


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Solution

PDO logo

Promotional Display Optimization - PDO

Create 1000’S of unique assortments for a diverse range of different sized stores in a matter of minutes

For any retailer the number of promotions can easily exceed over 1,000 each week and account for well over a third of all customers’ spend. They are proven in attracting new and retaining existing customers.However, customer purchasing patterns can change substantially based on the shopping trip, meal occasion, store location, and customer demographics.

Most retailers simply don’t have the capacity or the technology to create localized promotion assortments and display planograms for every store. They use a generic promotion display planogram, which stores must manually adjust depending upon their size and location.

As a result, operational execution in store may decline when a balanced assortment and inventory cannot be achieved. This results in the full sales potential not being realized. It is imperative that the customer can rely on a store having the full promotion assortment available every time they visit.

It can make or break a promotion if the right products with the right level of inventory are not chosen. If a business relies on averages, some stores will be out of-stock on the most popular items on the highest sales days, while for other stores, those same items might be less popular, resulting in overstocks at the end of the promotion period.

Promotional planograms based on incorrect assortment and inventory levels leads to individual stores changing end displays or not implementing at all. This results in lost sales, inventory wastage and inconsistent fulfillment of supplier obligations. Eventually leading to loss of income, and erosion of the brand.

  • Fast return on investment from being able to influence over a third of the weekly sales.
  • Reduces in-store labor replenishment caused by less than case pack fill and/or days-of-supply achievement.
  • Maximizes promotion sales opportunity throughout the promotion timeline.
  • Minimizes end of promotion excess inventory upon exit.
  • Improved In-store promotion execution.

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Features

  • Automation

    Promotion assortment automation

    Create 1000’s of unique assortments and display planograms for a diverse portfolio of different sized stores. PDO is flexible enough to use individual store specific fixturing and can adapt to meet your promotion cycle requirements. What used to take weeks to achieve manually can now be completed in a few days.

  • Ease of use

    Ease of use

    Three steps to produce effective Promotion Display Optimized Planograms – 1. Import templates from an existing space planning application. 2. Select different fixture sizes for the software to display the recommended assortment based on cluster grouping. 3. Using the assigned assortment, 1000’s of automated and optimized store specific space planograms are produced in minutes.

  • Inventory

    Inventory balance

    The measure of success of a promotion is not just the strength of the deal; it’s about having the right level of stock to meet customer requirements, without over stocking the stores with excess inventory or selling disappointment to the customer with empty fixtures. Creating the right balance of inventory will ensure a successful promotion.

  • Optimization

    Promotion optimization

    Using history and/or forecasts, each store planogram is optimized to include a unique assortment and inventory for each product range. You can also create regional or localized promotion assortments using the suppliability feature. The optimization will also identify customer purchasing patterns based on the shopping trip, meal occasion, store location, or local demographics.

  • Productivity

    Productivity

    Creating a balanced inventory using case fill and days of supply, eliminates the in-store staff requirement for continual stock replenishment. This releases staff to be more productive in other areas of the business. It’s about having the right product in the right quantity at the right time.

  • Return on investment

    Maximize the return on investment

    Promotional penetration can easily exceed well over a third of total stores sales. With the solution optimizing the assortment and space every week, a quick return on investment can be achieved.

Flexible deployment

We have a range of deployment options suitable for every type of business. For Promotional Display Optimization, we can distribute the software to the following options:

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Get in touch

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UK: +44 (0)800 121 4492
USA: +1 (866) 397 0546


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Galleria is the leading supplier of software and services for planning, automation and optimization solutions to both the retailer and supplier community.
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