The pace of retailing is getting even faster to meet consumers’ desires – and pricing is no exception. Competitive retailers not only have to ensure that all prices on the floor are current and compliant but also find ways to maximize same-store revenue through dynamic merchandise pricing. However, this is no easy task. Retailers have to consider these critical components: 1. What, when, and where should merchandise prices change? 2. How can the price changes be executed in real time with scale, speed and flexibility? 3. How do I gain visibility to ensure prices I pushed to the stores have been executed? Learn how to execute pricing decisions at speed and scale to avoid the race to the bottom.

1. Zebra Confidential
EXECUTING REAL-­TIME PRICING
FOR THE ALWAYS-­ON CONSUMERS
TODD BERNER
VICE PRESIDENT, ZEBRA COMMERCE
JOE MCCORKLE
GLOBAL RETAIL SOLUTIONS DIRECTOR, REVIONICS

2. Zebra Confidential
STATE OF PRICING AND
EXECUTING IN REAL TIME
§Transparency in Pricing
§Competitive Landscape
§Tightening Compliance Regulations
§Complex Market Drivers behind
“Best” Price Practices
§ Price Change Pace Increase
§ Drive towards Dynamic Real-­Time Pricing
§ Better Analysis...Leads to More Changes
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3. Zebra Confidential
THE WHY & HOW BEHIND DYNAMIC PRICING
• Competitive alert re-­optimization
• Defined competitive increase and decrease
thresholds by competitor group
• Trigger alerts and targeted item-­zone re-­
optimization when key competitive prices change
• Changes since last observation, include price
change % increase/decrease, absolute price
change increase/decrease.
• Auto-­approval & export of price recommendations
• Thresholds are defined at the zone/product
hierarchy-­level for increase and/or decrease in
revenue, increase and/or decrease in profit, and
no constraints flagged in the price
recommendation process.
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Near Real-Time
Recommendations
Dynamic
Re-Optimization
Exception
Management, Auto-
Approval & Export

4. Zebra Confidential
DRIVING TO REAL-­TIME DYNAMIC PRICING
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Auto
Price
Changes
Optimize
Competitive
Items
Exception
Lists/Reports
Competitive
Data
Cleansing
Sales, Price
and Cost
Data
Competitive
Data
Collection Auto Upload
Errors
Clean
Automated
Exceptions
#RevionicsLive

5. Zebra Confidential
PRICING EXECUTION UNCOVERED
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§ Pricing Teams may have poor visibility into store execution of price
changes;; ensuring tags are hung in the store on time
§ This creates a financial planning and forecast problem for the
business
§ While most work to achieve these goals are carefully calculated in the
front office, more effort needs to focus on the store execution to
ensure company financial goals are met
#RevionicsLive

6. Zebra Confidential8
Pricing Team are given the following goal:
§ Raise $1 million prior to Peak Season (Oct-­Dec) on inelastic items
§ Help pay for elastic key value items to be razor sharp on absolute
individual price and total price index vs. competitors
§ Run the models, get approvals and roll out in 4 days
ESTABLISHING CORPORATE PRICING GOALS
#RevionicsLive

7. Zebra Confidential9
FRONT OFFICE EXECUTION
Pricing Team met with all corporate
stakeholders and took down stated
goals
Pricing Team ran modeling for all
categories to look for margin
opportunities
Pricing Team got approvals in 3
days to roll out to stores

8. Zebra Confidential10
POST FRONT OFFICE EXECUTION
Pricing Team exported to back office all suggested price changes
(300 items)
Pricing Team promised $1 million to the business
The Business had upcoming pricing pressure for Q4, this was a
mission critical goal
#RevionicsLive

9. Zebra Confidential
STORE AUDITING POST REPORT
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§ Director of Pricing and several team members audited several
stores over the next 7 days
§ Discovered poor store planning execution
§ Very little tags placed on store shelf in time
§ No auditing to know how many changes were completed!
§ No way to estimate how much was made or if in compliance with
Corporate Pricing!

10. Zebra Confidential
HOW DO WE FIX IT?
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§ Wireless-­ it’s key in your stores!
§ Electronic operations hub in your stores-­ regardless of the Front
Office or IT task to push to stores
§ Color code tags for priority and ranking, eliminates guesswork
§ Store Teams scan shelf location and price tags to ensure they are
compliant with updated price changes
§ Ensure price tags are scanned and feedback/auditing loop sent
§ Gather daily reporting of % of tags hung per store/zone for suggested
price changes sent to stores
§ Pricing and Finance teams now know if the tags are on the store shelf
for profit/pricing image analytics
#RevionicsLive

11. Zebra Confidential13
Knowing the prices you want to
change & actually changing those
prices are different problems!
Approved Price Changes from your
Pricing Strategies and the execution of
those changes at the shelf may not
always be in sync
EXECUTION PROBLEM….
#RevionicsLive

12. Zebra Confidential
PAIN POINTS & COST OF EXECUTION
üConnected shoppers expect price transparency
between online and in-­store prices
üIn-­store price mismatch can result in fines and other
severe civil penalties due to regulations
$Retailers are constrained on how many price changes
they can take per week, leaving profit on the table
If a retailer takes all recommended prices
– 18-­35% of profit opportunities are on the table
$Example: grocery chain < 50 stores
– 21,000 price recommendations – no constraints
– $2.1M lost profit if prices taken over 8 weeks
vs. immediately
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18
35
2.1
#RevionicsLive

13. Zebra Confidential
WHAT IF WE COULD…
• Make most of the price changes on the store floor
with the labor we have?
• Ensure compliance by activating the POS when the
price changes on the floor?
• Seamlessly deploy ESL (Electronic Shelf Labels) as
part of an overall solution?
• Improve the quality of our predictive analytics just by
using the system?
• Do this with minimal IT development effort?
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#RevionicsLive

14. Zebra Confidential
DYNAMIC PRICING & EXECUTION
The best practices in dynamic
pricing with the best practices of
price change execution...
out-­of-­the-­box
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15. Zebra Confidential
THE VALUE PROPOSITION
The Right Price at the Right Time at the Right Place
• Price Management planning ensures proper pricing, tagging and
signage
• Sales and margin lift based on proven pricing analytic models
• Time savings via employee task managed price changes
• Compliance with laws on the shelf edge and at the POS
– Price Activation changes the prices on the floor with real-­time notification to the POS
• Compliance with corporate policies
– Price change notification and enforcement via price activation feedback capability
• Integration with existing store applications without rip and replace
– Ability to add mobile applications via Zebra Commerce
– Ability for partners & ISVs to sell the mobile software solution
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#RevionicsLive

16. Zebra Confidential
PRICE CHANGE CURRENT STATE
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Corporate
Pricing strategy
Labels mailed from HQ
Pricing file xfer to
store
Labels distributed to workers
Or printed in back-­office
No visibility to when price labels are
changed
POS Prices updated via Corporate
Scheduled Update
Retail Back
Office
Workers affix labels

17. Zebra Confidential
PME – ZEBRA / REVIONICS SOLUTION
19
Corporate
Pricing strategy
Pricing Data xfer
POS Prices updated with Floor
Change (ZCommerce)
Sales & Customer Data
Analytics & Forecasting
Compliance and Timeliness
Zebra Commerce
Price Execution
Prioritized Price Change Tasks
Mobile Scanning & Labeling
Price Activation to POS
Send Task Performance Data
Zebra
Commerce
Store
Interface
Phase 2
ESL
Control
Retail Back
Office

18. Zebra Confidential
Zebra converts the physical to digital to help
customers know the location, motion and state
of assets, people and transactions throughout
their value chain. Our solutions enable greater
visibility, so businesses can make smarter
decisions with more meaningful
and timelyinformation.
For more information on Zebra:
http://zebra.com
http://zebra.com/zebracommerce
Ensuring Retailers Price Smarter and Maximize
Profitabilitythrough Dynamic Pricing
To be the retailer’s choice for best-in-
class, shopper-centric, predictive analytics
and demand-based optimizationsolutions that
deliver faster time-to-value and achieve
maximum ROI.
For more information on Revionics:
http://http://www.revionics.com/
info@revionics.com

19. Zebra Confidential
THANK YOU!
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Todd Berner
tberner@zebra.com
Joe McCorkle
jmccorkle@revionics.com
#RevionicsLive