1. Clear Demand Price & Promotion Optimization
American Logistics Association – Commissary Roundtable – May 2018
Mr. Robert Comer
Program Executive Officer

2. Agenda Topic Presenter Time Clear Demand Introduction Nancy Stanton
2:15 - 2:25
Clear Demand Overview
Alex Bloom
2:25 - 2:35
Clear Demand Price Demo
2:35 - 2:50
Clear Demand Promotion Demo
2:50 - 3:05
Q&A
Team
3:05 - 3:15

3. Nancy Stanton – DeCA Pricing Team Lead
Section 1. DeCA and Partners
Moving Forward with Collaborative Joint Business Planning
Nancy Stanton – DeCA Pricing Team Lead

4. Alex Bloom – Clear Demand Principal Consultant
Section 2. Clear Demand Overview
Alex Bloom – Clear Demand Principal Consultant

5. Section Outline Project Goals and Objectives Clear Demand Focus Areas
Retail Strategy
Regular Price
Promotion Planning

6. Project Goals and Objectives
Implement strategic agency pricing initiative
Develop New Pricing Strategy – Move away from “cost-plus”
Improve Price Management Process – Create a more robust category review process, where price optimization is part of an overall strategic category management process
Standardize Vendor Pricing – Build a process around strategically responding to cost changes
Enhance Price Image – Develop the ability to effectively drive price image and improve competitive positioning on key value items
Phased Approach – Implement in two phases
Achieving these goals will allow DeCA to compete with traditional “outside the gate” retailers while maintaining patron savings

7. Clear Demand Enterprise – Focus Areas
Clear Demand provides a comprehensive price management solution
Regular
Price
Big Data Architecture
Price Response
Substitution and Affinity
Promotional Lift
Competitive Response
Competitive Gap Optimization
Intelligent
Rules
Strategy
Optimization
Demand Model
Lifecycle Pricing
Seasonality
Promotion Planning
Layering strategy and analysis on top of the best in class science found in the Price & Promotion modules unlocks growth potential
Retail
Strategy

8. Retail Strategy and Strategic Pricing
A comprehensive pricing strategy consists of several key elements
Competitive
Positioning
Store Zone Clustering
TOM
Business
Rules
Consumer
Demand
Modeling
KVI
Analysis
Performance
Measurement
Pricing Strategy
Years of experience working with retail companies uniquely enables Clear Demand to help DeCA develop their corporate pricing strategy

9. Retail Strategy – Demo
KVIs and Store Zone Clustering

10. Regular Price – Price Review
Standardize the process for generating price recommendations
Details
Process Flow
Features
Load relevant sales history data
Configure business rules
Review price recommendations
Benefits
Combines business rules with consumer demand modeling science to recommend optimized prices
Improves forecast accuracy
Standardizes the pricing process
Product Attributes
Demand Modeling
Business Rules
Sales
Data
Clear Demand
Pricing
Engine
Competitive Data
Pricing
Rules
Cost Changes

11. Regular Price – Price Review
Review prices recommended by the application

12. Regular Price – Cost Change Alerts
Automatically identify cost changes and respond strategically
Details
Process Flow
Features
Alerts the pricing analyst of cost changes on a regular cadence
Recommends price changes based on user defined rules
Enables the analyst to either approve or manually override price recommendations
Benefits
Ensures cost changes do not go unnoticed
Automates the response to cost changes
Centralizes the price maintenance process
Price Review

13. Regular Price – Competitive Alerts
Enhance price image by responding to competitive changes
Details
Process Flow
Features
Alerts the pricing analyst of competitor price changes on a weekly basis
Recommends price changes based on predetermined rules (i.e. prices for image items must be within 10% of Walmart)
Enables the analyst to accept prices or to manually override before approving
Benefits
Keeps the analyst informed of shifts in competitive pricing
Automates the response to competitive price changes
Standardizes the price change process
Price Review

14. Regular Price – Demo

15. End to end solution covering planning, approval, and execution
Promotion Planning
End to end solution covering planning, approval, and execution
Details
Process Flow
Features
Plan/build promotions directly in the application
Quickly forecast many different promotions
Evaluate different offer types across key metrics
Benefits
Enables the analyst to run what-if scenarios and find the best promotions
Empowers the analyst with information for vendor negotiations
Standardizes the promotion planning process
Promotion Review

16. Promotion Planning – Forecasting
Enable forecasting and what-if analysis
How can I setup promotions to generate the most lift?

17. Promotion Planning – Demo