January 25, 2017 — Leveraging its weekly, store-level enabled point-of-sale data from major U.S. brands and retailers, The NPD Group, a leading global information company, now offers a Price
and Promotion Management Service, which is a suite of scenario planning and simulation tools designed to help manufacturers and retailers make price and promotion decisions with greater speed and accuracy. The new subscription-based, category-wide service is regularly updated with store-level enabled point-of- sale data to provide instant insights through an intuitive interface to help test pricing scenarios, validate spending on promotions, and respond to other common pricing and promotion challenges.
NPD’s Price and Promotion Management Service consists of two core modules: Price Management, a category-wide simulation tool designed to support decisions related to long-term price changes, changes in price structure, and ongoing competitive analysis; and Promotion Management, a category-wide 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. Because the platform looks across the competitive landscape and reflects true current market conditions, it also determines to what extent price and promotion decisions provide a competitive sales advantage or lead to switching across one’s own product line and subsidize purchases that would have occurred without the pricing action.
“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.”
In addition to its new price and promotion offering, NPD offers a wide range of analytic services, including consumer segmentation market forecasting, and new product forecasting, along with a variety of marketing effectiveness methodologies, such as in-market testing, key driver analysis, and marketing mix.