Planning and forcasting promotions
Local events, planned quantities and special promotions provide a large amount of data and information that allow planning much more precisely than just with one’s own experience. If action data is measured, adjusted and collected with the required granularity according to the right criteria, this creates the necessary basis to better prepare future actions strategically and to forecast expected action volumes. Just as you already know from demand forecasts. The only difference is that a slightly different methodology has to be used here …
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The time of year, the range of products, the pricing, target groups and current buying behavior are only part of the information that must be extracted and evaluated separately when forecasting special offers (promotions).
Items develop interdependencies when they are advertised, show cannibalistic effects within the assortment and show different sales behavior as soon as only one value changes.
All this data, collected and cleverly prepared, opens up new possibilities for forecasting techniques that are particularly effective for promotionsand can significantly improve your results.
Determine your additional demand during promotions more precisely and avoid lost sales or unnecessary remaining stock at the end of a promotion.