Promotions represent a key issue in the operation of mass distribution. However, forecasting them is a complex subject, particularly because of the greater volatility of sales, which are often impacted by external factors and the resources allocated to communication campaigns, but also because of the more limited historical data for each of the possible promotion mechanisms.
Verteego's machine learning solution is particularly effective for forecasting promotional sales because of its ability to address both of these issues simultaneously.
In food distribution, allocating the right amount of articles to the right outlets is a central issue. This involves both long-term planning of commitment quantities to optimise coordination with suppliers and negotiation of distribution conditions, as well as shorter-term planning to optimise stocks in warehouses and stores.
In this context, Verteego brings not only more accuracy thanks to its machine learning technology, but also the ability to generate forecasts at a higher frequency and in a very short time frame.
Defining the optimal promotional scenario (choice of price, promotion mechanisms, location in the point of sale, merchandising methods, duration and timing of the promotion, communication methods and budget, etc.) is a delicate subject that jointly mobilizes the purchasing, marketing and supply chain departments.
Verteego's simulation features allow us to calculate thousands of possible scenarios in a very short time and to compare their impact on sales quantities, turnover and margins.
Highlighting an item at the point of sale or on your online store is a subject that can quickly become complex when you consider the many possibilities available by combining all the different options (packaging, shelf, gondola heads, location in the point of sale, sales animations, etc.).
Verteego allows you to calculate the precise impact of each of these different combinations to help you choose the one that best fits your strategy and the operational, commercial and profitability constraints you have set yourself.
Choosing the right price is the key to a profitable business. The complexity of pricing lies, among other things, in the variability of the sensitivity of sales to the price level depending on the products (subject to elasticity), as well as in the interaction of sales between them (e.g. cannibalization, halo effect, etc.).
Verteego forecasts, for each of the item/store combinations, the level of sales according to the pricing scenarios considered. The accuracy thus obtained exceeds in a large majority of cases the accuracy that could be achieved using a simple elasticity calculation, which does not take into account the multiple factors that impact sales, nor the effects that a price variation could have on the other items in the assortment.
Whether it is a physical or electronic point of sale, the assortment is selected with respect to numerous constraints (surface area of the point of sale, concept, customer preferences, width and depth of the range, regional specificities, contracts with suppliers, etc.).
By integrating numerous internal, external and calculated variables into its forecasts, Verteego makes it possible to simulate different assortment scenarios while respecting the constraints imposed as well as commercial and profitability objectives.
Knowing the future traffic of a sales outlet, both quantitatively and structurally, makes it possible to answer many commercial (products to be promoted, commercial actions to be favored, etc.) and operational (stock levels, sales force planning, etc.) questions.
Verteego allows you to rely on your sales receipts and visit counters to forecast the traffic in your points of sale in great detail.