Understand •Manipulate •Synchronize •Profit

Manipulation of demand is common in retailing, but rarely done in context of accurate readings of seasonal or instantaneous demand.

• Pricing - the common tool for demand manipulation, but its impact and objectives are not constant.
• Initial: price image, competition, category, base volume
• Promotional: revenue, traffic, category marketing
• Clearance: inventory reduction, loss minimization
• In-season Promotional Events: marketing, price and non-price
• Accurate estimation of pre-season and in-season demand is equally important to Supply manipulation.
• Replenishment and allocation systems are pre- and in-season tools to drive supply.
• The demand models behind these systems often lack the sophistication and accuracy appropriate to their impact on the bottom line.
• Supply-aware demand and demand-aware supply are fundamental to precision retailing, and a source of untapped potential for returns in retailing operations.