Transcript of "DemandTec Customer Case Study: Giant Carlisle"
A DemAnDTeC CusTomer suCCess sTory Giant Food Stores Prices the Entire Store with DemandTec Giant Increases Efficiency and Effectiveness in Pricing, Promotion, and Deal ManagementCusTomer overview Giant Food Stores, LLC, a division of Ahold USA, traditionally had a narrow, but consistent Every Day Low Price (EDLP) strategy that it applied across most products. TheChallenge company’s 30 year old, labor intensive pricing and promotion systems could no longerGiant needed more flexibility inits ability to execute pricing and keep pace with the sheer number of pricing decisions in a rapidly changing market,promotion strategies, and it needed and these systems limited the company’s ability to execute more sophisticated pricingto keep pace with a flood of cost and strategies. Company executives recognized that a new solution would boost efficiencycompetitive changes in a fast-moving and help the company stay ahead of its competition.market. Because they support 30 different price zones covering 147 stores, the pricing teamsolution potentially faced 30 different variations of every decision it made. Adding complexity toDemandTec Lifecycle Price this scenario was the growing amount of competitive data Giant collected and the degreeOptimization™ and DemandTec End- of cost-volatility in the market, which made those decisions even more daunting andto-End Promotion Management™ overwhelming.Key Benefits According to John Lerch, Director of Retail Pricing at Giant, “It wouldn’t be unusual ton Pricing team productivity more execute 40,000 to 100,000 pricing decisions in the course of a week’s time. This was a than doubled daunting task using their legacy manual systems, which required a human decision forn Specific pricing actions are better aligned with corporate pricing every SKU in every price zone.” strategy Giant was interested in more consistently executing its pricing strategy based on an Results of pricing rule changes definitive set of rules. It kept many of the rules on paper, others were only managed in and promotions are accurately people’s heads, and some weren’t documented well enough to help ensure sustainability forecasted before new prices hit the shelves over time. The company also had no means to reliably forecast the impact of rulesn Streamlined deal management changes on its business before prices hit the shelves. process improved efficiency and In addition to the pricing challenges, promotion planning and forecasting were being reduced errorsn Benefits can be rolled into performed manually – a very time-intensive, cumbersome activity for Giant merchants. lower consumer prices – further Vendor deal management added similar burdens, as the paper-intensive and error-prone improving competitiveness processes consumed resources.CompAny snApshoT “I had a very significant backlog of pricing projects,” says Lerch. His team recognized that with its restrictive legacy tools, it had no chance of completing routine pricing executionn Revenue $4.3 Billion work, much less pursuing higher-level goals. “Unless we were to nearly double our staff, we would not have been able to catch up with that.”n Industry Segment Grocery Embarking on a Path of Innovation with DemandTec Solutions for Pricing and Promotion Managementn Geography As Giant surveyed the market for a solution, DemandTec stood out as the company that 147 supermarkets in Pennsylvania, could truly partner with them to meet their current and future needs. Scalability was one Maryland, Virginia, and West Virginia under the Giant Food driver in their decision. DemandTec had proven that its solutions could handle massive Stores, Martin’s Food Markets, and amounts of point-of-sale and competitive data, it could easily handle the large numbers of Food Source banners price changes Giant faced, and it could do so without the need to increase staffing levels.www.demandtec.com