Client Challenge
A high-low retailer with over 200 locations wanted to significantly improve their price image and value proposition to increase their competitive position in key markets.
Additionally, they needed a trusted business partner to develop a new pricing strategy and advanced capabilities for both Fresh and Center Store.
Radian’s Impact
Our solution included: (a) Weekly Base Price Maintenance support and (b) Strategic Category Pricing Reviews.
Weekly Price Maintenance. Radian’s support provides advanced and tools and capabilities including:
- Competitor Price Checks. We analyze over 100,000 competitor price points every week. Radian’s Base Price tools and dashboards provide visibility to over 20,000 key items for three competitors across five states.
- Exception Reporting. Users can easily identify when key items that fall outside cost change, margin rate or price index thresholds that can be configured by category, competitor or price zone.
- Scenario Evaluation. Our tools also model the financial impact for potential price changes for any item in the store across each of the retailer’s price zones.
Strategic Category Pricing Review. Developed (a) new business processes to ensure pricing architectures align to category roles and (b) business rules to price items across sizes, national brands vs. private label, etc.
Results
Radian delivered tools and business processes that enable the Pricing team and Category Managers to quickly and easily identify cost or competitor price (index) changes for +1,200 KVIs.
Improved price image for over 500 highly elastic KVIs to generate +150 to 220 bps improvement in volume and +50 to 100 bps in traffic in high priority categories and segments.
Fine-tuned prices and indices on +1,000 lower volume and inelastic items across Fresh and Center Store to improve margin enough to offset the price reductions and margin investment in the high priority KVIs.