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SAS Revenue Optimization Suite

Submitted by

Kannan S
Arvind KK
Stanley Livingston
Kathirvel S

Challenges in revenue optimization • Optimize prices for better results. it’s difficult to maintain brand image and competitive pricing strategy. Setting such strate- gies requires using accurate. retailers have to get it right – every time. but what they will want in the future. • Gain price optimization without painful financial decisions. promotion and markdown strategies all must be more intelligent and more predictive. • Speed results.SAS Revenue Optimization Suite SAS® Revenue Optimization Suite Overview Pricing has a dramatic effect on a retailer’s bottom line. • Obtain lower total cost of ownership. with low. from retail pricing experts. upfront costs? Competing in retail has always meant offering the right product to the right customer at the right price – even at the right moment. • Gain greater merchant productivity. meanwhile. • Scale for custom optimization for your company. Intense competition for consumer dollars has reduced the margin of error. What if you could get such results quickly. reliable information about not just what custom- ers want now. Getting it right every time means that pricing. Just a 1 per cent increase in product price can raise operating profit by as much as 8 per cent to 11 per cent. As a result. .

and the largest independent vendor in the business intelligence market. • Enables modelling of both short. who can access reports that explain the rationale behind the optimization. Through innovative solutions delivered within an integrated framework.SAS Revenue Optimization Suite About SAS SAS is the leader in business analytics software and services. shifting holiday dates and promotional variations. SAS helps customers at more than 45. including accounting for seasonality. How SAS® Revenue Optimization Suite Helps The SAS Revenue Optimization Suite enables you to maximize revenue throughout the product life cycle – across all kinds of merchandise – with a flexible approach to solution licensing that lets you invest in SAS without straining your budget. • Provides pricing recommendations to merchants and price analysts.and long-lifecycle products. The solution: • Scales to handle granular pricing at the appropriate level – even to the store- SKU level of pricing – as well as zone pricing. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®. .000 sites improve performance and deliver value by making bet- ter decisions faster. • Accounts for trade/vendor funds in promotion optimization. • Uses advanced analytics to enable complex retail forecasting.

also available individually: • SAS® Regular Price Optimization. And because of a common foundation for pricing rules. • SAS® Promotion Optimization. SAS helps you set and manage regular prices. . • Aligning markdowns with demand and store-specific inventory levels. By combining advanced data management. forecasting and optimiza- tion capabilities within an easy-to-use interface. all within the context of total product lifecycle management. revenue or the effects of halo and cannibalization. SAS has a lower cost of ownership. plan optimal promotions and execute the most successful markdown strategies. The SAS Revenue Optimization Suite also helps you manage revenue and margin. promotion pricing and markdown pricing. you can optimize regular or everyday pricing. • Executing the most profitable pricing strategies. • SAS® Markdown Optimization.SAS Revenue Optimization Suite Challenges that can be overcome: • Maximizing margins across stores/products and optimizing prices. forecasting and merchandise data across all phases of pricing and promotion. • Accounting for product. consumer and market-level variations for pricing and promotion. With the SAS Revenue Optimization Suite. Solution Components The SAS Revenue Optimization Suite includes three integrated components. • Predicting demand.

their assis- tants.. . Retailers can also predict the impact of proposed price changes on revenue. The solution provides a pro- motional planning process that enables better workflow and communication between the marketing department and product managers. category management teams and pricing analysts to make timely profit- and revenue-maximizing decisions in the context of operational constraints. cross-elasticity and demand associated with different products. SAS® Promotion Optimization SAS Promotion Optimization enables retailers to maximize margin and revenue through improved promotion planning. unit volume and profitability based on elasticity.e. The solution allows for high-low product categories. regional demand patterns and competitive price information to maximize category margin and volume goals. This solution provides an intuitive interface that enables merchants. The solution has comprehensive support for vendor deal management and collaboration. It helps category managers determine if the vendor deals are profitable for the category – i. would accepting the deal grow the category or merely cannibalize sales from the rest of the category.SAS Revenue Optimization Suite SAS® Regular Price Optimization SAS Regular Price Optimization helps retailers establish and maintain optimal everyday prices based on costs. at what price points and through which promotional vehicles. as well as a more efficient and effective method for managing the process of selecting products to be represented in marketing vehicles. It helps in determining which items or groups of items to promote in which locations.

you can develop and implement optimum clearance pricing strate- gies at the local market level to maximize revenues and profitability while meeting end-of-season inventory goals.SAS Revenue Optimization Suite With the advanced demand modelling and optimization techniques that SAS provides. base sales volume. develop and implement optimal promotional plans. at what levels and in what locations. In addition. price elasticity and local demand or preferences. You can base this analysis on critical factors such as inventory levels. exception-based pricing Minimize revenues lost due to stock-outs Achieve ROI quickly Comprehensive merchandising intelligence Advanced analytics and forecasting . support inventory planning decisions and maximize return on promotional investments while accounting for cannibalization. you can accurately predict incremental lift from planned promotions. SAS® Markdown Optimization SAS Markdown Optimization enables you to identify which items to mark down. Features of the SAS Revenue Optimization Suite The SAS Revenue Optimization Suite helps in solving the following challenges in revenue optimization Maximize profitability through optimal pricing Improve productivity through automated.

so you can re- spond quickly to product performance. Predefined. thus. trend and seasonality. regional demand patterns and competitive price information.SAS Revenue Optimization Suite Maximize profitability through optimal pricing The SAS Revenue Optimization Suite empowers you to improve profitability by helping you: • Access the factors of optimal price consideration. cross-price effects. such as creating targeted assortments for the customer. inventory effects. . extensive price rules help you set prices that maximize category performance without the need to manually validate price changes across a number of rules. revenue – from planned promotions. market opportunities and competitive actions without additional burdens on your time. and product lifecycle effects. and lift from participating in marketing vehicles. • Determine the incremental lift in demand – and. category managers can more effectively and frequently manage large volumes of price changes while relying on fewer analysts. • Take trade funds into account when making pricing decisions. such as price elasticity. Improve productivity through automated. By making pricing decisions easier to analyze and implement. exception-based pricing By identifying exceptions and recommending optimal price changes. • Create permanent markdown plans that maximize margins and eliminate unnecessary markdowns. As a result. this powerful suite enables you to make decisions easier and faster. • Set and manage regular prices for products based on costs. the SAS Revenue Optimization Suite enables you to focus on other critical activities. and by focusing your efforts on managing exceptions.

thus providing you with a single. start focused and maintain a phased approach toward your specific revenue management goals. helping retailers yield maximum competitive advantage. fully integrated architecture.SAS Revenue Optimization Suite Minimize revenues lost due to stock-outs With the SAS Revenue Optimization Suite. end-to-end revenue management environment. The solutions in the SAS Revenue Optimization Suite rely on a retail-specific. analytic models and reporting templates. the suite is fully extendable. helping you achieve better in-stock positions during promotional periods. data models. You can plan strategically. The component solutions incorporate industry domain expertise and contain industry-proven business definitions. . All these features combine to reduce project risk and provide better. Achieve ROI quickly The SAS Revenue Optimization Suite was specifically designed to address key business challenges unique to retail. comprehensive. The SAS Revenue Optimization Suite allows different retail segments to ad- dress their particular revenue needs – but individual companies can also configure the solution components to incorporate proprietary knowledge and business processes. In addition. faster return on investment. you get best-in-class demand forecasting and demand modelling capabilities to accurately calculate both your base sales volume and incremental lift in demand from planned promo- tions and markdowns. It eliminates the need to develop or adapt generic analytic software to fit the retail environment.

promotion and markdown impact. SAS Retail Intelligence Solutions help retailers make the best decisions and get the best results. location and time hierarchy along with various performance metrics. Advanced analytics and forecasting Built-in forecasting for the retail engine drives better results for best-in-class forecasting for retail. which leads to better forecast quality. margin and price changes per market. including sales. All three modules also analyse the performance of previous clearance events and forecast the uplift from planned clearance events. as well as unnecessary and costly markdowns. SAS’ analytic platform drives better results using powerful attribute-based demand modelling to drive the best pricing decisions with an automated weekly model refresh. Such forecasts help you avoid stock-outs and overages. and a clear user interface allows in-house model management versus expensive consulting or subscriptions . The SAS Revenue Optimization Suite is an integral part of a comprehensive suite of proven solutions that provides unmatched merchandise intelligence for retailers around the world. The forecast includes price.SAS Revenue Optimization Suite Comprehensive merchandising intelligence All three modules enable the creation of customized reports that can show pricing information by product. revenue.

o Provide merchants with visibility into category. o Deploy SAS® Revenue Optimization one of two ways – as a managed service (which can speed results and reduce your initial investment) or as software behind the firewall (which can provide a lower long-term cost of ownership). o Use retailer workflows and an intuitive interface to empower business users. seasonality and changing calendar events using built-in forecasting. better results. apparel and hard lines including fast-moving consumer goods and fashion items. . o Gain visibility into pricing decisions to see the cross-effects and differentiators directly affecting the bottom line. o Speed pricing decisions with automated plans. reducing or eliminating the need for manual processing.SAS Revenue Optimization Suite Key Benefits of SAS® Revenue Optimization Suite  Better prices. promotions. o Optimize prices for a wide range of products for grocery.  Flexible investment strategies. o Easily handle and understand difficult retail scenarios such as sorted cause and effect. o Improve communications with shared visibility into the optimization rationale.  Greater merchant productivity.

o Use SAS' proven track record with large.  Lower total cost of ownership. . giving you the confidence to merge business with analytics to optimize revenue.SAS Revenue Optimization Suite  Optimization that scales. o Build a common retail foundation that reduces implementation and administration for retailers. medium and small retailers to price at all levels of the product and location hierarchy down to store SKU. Thus the automated SAS Revenue Optimization Suite can increase productivity and communication across the retail organization by providing visibility into decision making.

0 and 3. Windows Server 2008 and Windows Vista*  Internet Explorer 8 on Windows XP Professional.1 on POWER architectures  Microsoft Windows (x86-32): Windows Server 2008 family  Microsoft Windows on x64 (EM64T/AMD64) Windows Server 2008 for x64 Supported Web browsers  Internet Explorer 6 on Windows XP Pro  Internet Explorer 7 on Windows XP Pro.1  JBoss EAP 4.3 and 6. Windows Vista* and Linux for x86 (SuSE and RHEL) Web tier  BEA WebLogic 9.2 .0 on Windows XP Pro.SAS Revenue Optimization Suite System Requirements Client environment  Microsoft Windows (x86-32): Windows XP Professional  Microsoft Windows(x64): Windows 7** for x64 Server environment  AIX: 5.2  IBM WebSphere 6. Windows Vista* and Windows 7**  Firefox 2. Windows Server 2008.