NEWS26 January 2017

NPD Group launches price and promotion management service

Data analytics News North America Retail

US — Global information company The NPD Group has launched a suite of scenario planning and simulation tools designed to help manufacturers and retailers make price and promotion decisions. 

Busy shopping centre crop

The subscription-based, category-wide service is updated with point-of-sale data to provide insight through an interface to help test pricing scenarios, validate spending on promotions and respond to other common pricing and promotion challenges. 

The service consists of two core modules: price management, which is a simulation tool designed to support decisions related to long-term price changes, changes in price structure and ongoing competitive analysis; and promotion management, which is a promotional effectiveness tool designed to help clients measure the return on their trade promotion spending, and benchmark those results against other major brands and items in their category. 

“Pricing and promotion don’t exist in a vacuum,” said George Terhanian, NPD’s president of Analytic Solutions. “Different stores carry different products; rollbacks at one retailer can mask the effect of a price hike at another.  

"Seasonality, holidays, and distribution changes can all affect outcomes, and aggregated data can mask a multitude of these impacts. With the granularity offered by store-level data, retailers can break through the clutter to isolate the true impacts of their actions, thereby enabling them to make informed decisions and move ahead with confidence.”