Distilling data for strategic pricing and promotions success
With data from millions of households available to inform its marketing strategies, Kroger needed help structuring and analyzing that data to make the best strategic choices when setting prices and developing promotional plans. The grocery retailer was looking for solutions to help it track and respond to pricing relationships in the market, and also enhance its promotional planning through a deeper understanding of consumer behaviors.
Kroger turned to 84.51°’s Optimization Science for optimized pricing and promotion plans developed with Artificial Intelligence (AI) and automation. Through 84.51°’s Regular Price Optimization (RPO) solution, the retailer enhanced its ability to explore future scenarios to optimize its long-term pricing decisions. And by using 84.51°’s Promotion Optimization (POp) solution, Kroger combined its own product data with 84.51°’s forecasting science to sharpen its promotional tactics based on a variety of factors.
The recommendations on pricing and promotions led to tangible performance improvements for Kroger. After three years of execution in-market, 84.51°’s Promotion Optimization Science has driven significant improvements to both sales and margin for the retailer by ensuring that customers get the best possible prices and most relevant promotions while maintaining key business metrics.
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