Key Capabilities of JDA® Promotions Optimization:
- Real-time, consumer-driven promotion simulation, optimization and comparison
- Scenario analysis to evaluate various promotional events
- Calculation of halo and cannibalization effects both within and across categories
- Embedded analytics that evaluate promotional effectiveness and forecast accuracy
- Understanding of the total demand impact of a promotion and seamless integration with JDA’s Supply & Demand Optimization solutions to ensure inventory is balanced with promotional plans
JDA Promotions Optimization identifies optimal promotional campaigns, so that retailers can shape demand and achieve their merchandising goals and objectives. The solution employs advanced statistical methods to predict the results of a promotion at various levels of segmentation, such as store or channel. JDA Promotions Optimization then recommends which promotions to run, the optimal promoted price that maximizes profitability, and the most effective marketing instruments that should be used to advertise the promotion to the target market.
Using an intuitive, Web-based interface, JDA Promotions Optimization enables users to determine promotional objectives and set the criteria to be evaluated. Once initial factors have been determined, users run promotions optimization to predict the impact that the set promotional factors will have on revenue, margin and unit volume.
Our solution offers robust scenario management capabilities that enhance the optimization process and further refine the promotions planning process. An unlimited number of scenarios can be run to compute vital factors such as revenue/profit impacts, halo effects, cannibalization and post-promotion dip effects. This iterative process of optimizing various scenarios promotes planner effectiveness and ensures that all important factors are considered when promotions are reviewed and when optimal promotions are selected.
JDA Promotions Optimization is often used in conjunction with JDA® Demand so that the calculated lift from the promotion is fed back into the forecast. Thus, the effects of the promotion are synchronized with the supply chain so that the right amount of product is available to meet the expected lift. Integration between promotions and demand management is a best practice that enables retailers to create a one-number forecast that drives the entire supply chain.
