Pricing and promotion

Over the past few decades, Artificial Intelligence (AI) made a huge leap from a fancy buzzword out of the science fiction realm to a powerful technology that is virtually reshaping our reality. What was once perceived as a figment of our futuristic imaginations is now a fundamental part of our ever...

Stiff market competition and tough economic strains are putting pressure on businesses to find data-driven solutions for more informed decision-making. Optimize pricing decisions with mathematical precision, automate price management processes, reduce operational costs, measure the true impact of p...

To optimize promotions across various channels and countries, a video game publisher encountered challenges in accurately forecasting demand 24 months ahead and effectively managing new game releases. Grid Dynamics addressed these issues by developing robust demand forecasting models and what-if an...

Modern business intelligence (BI) tools provide users with a wide range of data consolidation, preparation, querying, and reporting capabilities that empower them to make better business decisions. However, the adoption process is non trivial even for the leading BI solutions. In this article...

Forecasting is ubiquitous in modern enterprise operations — a wide range of tasks, from inventory management and price optimization to workforce allocation and equipment maintenance, cannot be efficiently performed without data-driven forecasting. In many of these applications, one needs to not...

This report is based on a survey of marketing, merchandising, and pricing directors and executives and aims to assess their priorities, challenges, and plans with regard to decision automation in the area of revenue management. The main topics of this study include the following: What are the...

Evolving beyond a mere tech advantage, artificial intelligence (AI) has gone a long way to cement itself as a mainstay of modern-day retail. In other words, AI solutions are a competitive necessity for retail. Designed to assist business and technology executives in understanding and deploying AI e...

A robust pricing strategy that aligns with market trends is perhaps the most crucial competitive differentiator today. In this white paper, we introduce you to how an advanced price intelligence platform enables businesses to automate their pricing and promotion strategy with unparalleled analytica...

In an era where customer data offers valuable insights into user behavior and action, understanding and leveraging this data is crucial for business success. The field of marketing analytics—from its nascent days of predictive analytics to the modern-day marvels of machine learning—charts the journ...

Supply chain and price management were among the first areas of enterprise operations that adopted data science and combinatorial optimization methods and have a long history of using these techniques with great success. Although a wide range of traditional optimization methods are available for in...

Marketers usually use multiple channels–such as sponsored search, display ads, and emails–to reach their customers, and each channel usually includes multiple activities or has multiple parameters that are associated with various costs. For example, a marketer can run several email campaigns, each...

Price setting is one of the most important problems in retail because any price setting error directly results in lost profit. However, traditional price management methods almost never achieve optimal pricing because they are designed for traditional environments, where the frequency of price chan...

Pricing is one of the key factors that drives a successful retail business model, and it is also one of the most difficult to manage. Retailers made lots of improvements on their pricing strategies over the last decade, moving from cost plus or value pricing to modern day AI-driven price management...

This is the third post in a series of articles on AI/ML-based decision automation in retail price management, this time focusing on implementation and technology. The automation of pricing decisions is a challenging task that requires a software system to understand business objectives and constrai...

AI-based decision automation is particularly beneficial when a large number of decisions must be made in near real time and need to take a wide range of signals into account. Additionally, these decision-making components have to be aligned with the pricing strategy and integrated into the price...

AI has great potential to transform or even disrupt enterprise operations, and price management is among the most important business functions that directly affect enterprise profitability and efficiency. The impact of artificial intelligence (AI) technologies on the price management process is not...

A modern merchandising system can provide a guided product discovery experience to shoppers, which is essential for retailers with large online catalogs. These systems and tools allow merchandisers to improve product listing relevancy by controlling product matching and ranking when a shopper see...

The convergence of in-store and online retail operations in recent years has put significant new demands on the management of pricing, offers, and promotions as compared to pre-omnichannel times. The outdated, simplistic approaches to determine the price of products and promotional offerings are st...

Pricing decisions are critically important for any business, as pricing is directly linked to consumer demand and company profits. Even a slightly suboptimal decision-making process inevitably leads to tangible losses, and major mistakes can have grave consequences. Optimal pricing is a challeng...

The promotions manager couldn’t believe it. For weeks, he had carefully planned the promotion, running the numbers again every day just to double check that everything made fiscal sense. By all indications, the promotion would increase demand and be a big money maker for the company, so he was ex...