To achieve maximum value in today’s volatile and competitive environment, retailers must tailor assortments specifically to consumer demand, as well as price and promote items according to local preferences

The highly competitive omni-channel environment coupled with volatile economic conditions are forcing retailers to re-examine their go-to-market strategies and execution. One key strategy is optimizing product pricing.

Gone are the days of zone or corporate pricing strategies that operated in a vacuum. In order to effectively compete and drive maximum value, retailers must tailor assortments specifically to consumer demand, as well as price and promote items according to local preferences. They also must tie pricing changes all the way back into demand plans to ensure that inventory is readily available. By utilizing advanced price optimization solutions, retailers can gain visibility into the impact of a pricing decision on the entire supply chain and address three key areas—initial pricing, promotional pricing and markdowns.

Once these areas have been addressed, they form a solid foundation for effective lifecycle pricing – a proven strategy that links promotional planning, price determination and advertising execution processes. Lifecycle pricing plays an essential role in creating a valuable customer-centric retail environment.