Teradata

A promotion may be a wonderful opportunity for your customers, but it can prove a real challenge for you. That’s because it’s so difficult to predict impact on item sales with such variables as length of promotion, media used, product choice and amount of discount.

Two things can happen. If you under-estimate promotional impact, you run the risk of out-of-stocks – and disgruntled customers. Over-estimate, and you potentially face excess inventory and the erosion of profits.

Despite those risks, promotions remain a key component of your efforts to differentiate you from your competitors and increase customer traffic. What you need is a new way to view promotions, a view that provides you with a clearer picture of the impact before you launch the program.

Teradata® Promotions Management for Demand Chain Management (DCM) lets you deliver your event strategy to your customers, systematically and effectively. It’s a powerful tool that automatically calculates the precise additional stock needed to meet increased customer demand during your promotion. And it lets you easily execute these promotional orders as part of the Teradata Demand Forecasting and Automated Replenishment solutions.

The Teradata Promotions Management for DCM module takes an array of variables into account, including:

• Type of media or combination of media, including television, radio, fliers, or newspapers
• Length of the promotion
• Discount percent offered on the merchandise; for example, the effect of a 25% off promotion vs. 50%, or $.50 vs. $1.00 off
• Retail dollar value of the merchandise; for example, two articles in the same category at the same discount percent but at different retail prices
• Contribution ranking of the SKU in each location

After weighing all the factors that can affect the promotion, Teradata Promotions Management for DCM automatically develops a sales multiplier and provides you with everything you need to accurately forecast your merchandise requirements and sales results by individual SKU at each store location. The tool also allows you to manually override or modify the recommended uplift, if needed. The result? You have the right merchandise for the corresponding promotional event at every location.

The Teradata Promotions Management for DCM module also evaluates the promotion’s sales results by item and location, then records those results for future reference and adaptation. As your promotions evolve, Promotions Management uses these historical records to automatically tailor future forecasts.

Teradata Promotions Management for DCM brings you even more advantages, including:

• A structured, systematic approach to promotional planning
• Timely and precise ordering of promotional stock to improve the rate of promotional sell-through
• Improvements in customer satisfaction through better in-stocks
• The ability to recognize and address inventory requirements well in advance of the actual promotion
• The flexibility to view previous promotions and replicate and enhance successful events
• Improved capabilities for setting targets and previewing planned promotions prior to execution
• Automatic execution of events affecting the forecast and replenishment orders
  
  
  

You can easily merge the Teradata Promotions Management for DCM module into the Teradata Automated Replenishment for DCM system, or seamlessly integrate it into other systems. Either way, the results are the same: an easily managed and maintained solution that lets your managers set targets and view planned promotions before they are implemented.

To find out more about how the Teradata Demand Chain Management solution and its Promotions Management module can help you grow a better, more productive business, contact your Teradata representative or visit Teradata.com/dcm.