🗝️At a glance: A fast-growing retail value chain reduced hundreds of price points to just 4–5 per category, improved demand planning accuracy, and streamlined merchandising and planning decisions using Increff’s solution.
What Is This Case Study About?
This case study highlights how a leading Indian value retail chain improved merchandising and planning by solving multi-price point complexity. Using Increff’s solution, the brand streamlined demand planning, optimized price-point strategy, and improved distribution requirements planning across categories.
Client Overview
- Type: Value Retail Chain
- Industry: Fashion & Value Retail
- Operations: Multi-category, multi-vendor sourcing
- Key Focus: Price-point optimization and demand planning
- Objective: Simplify merchandising and planning decisions
Challenges Faced: Why Price-Point Complexity Was Impacting Planning
As the brand scaled, managing multiple price points became increasingly difficult:
- Multiple vendors led to multiple price points for the same style-size combination
- Lack of clarity in assortment price strategy impacted merchandising decisions
- Demand planning became complex due to too many price-based analysis groups
- Grouping price points into large buckets did not suit price-sensitive customers
- Vendor performance analysis and planning decisions became inefficient
Increff’s Solution: Data-Driven Merchandising and Planning for Price Optimization
Increff implemented its merchandising and planning solution to simplify price-point strategy and improve demand planning.
Data-Driven Demand Planning
- Analyzed daily sales data across store, category, and subcategory levels
- Improved visibility into demand patterns
- Enabled structured demand planning across categories
Price Point Consolidation
- Created MRP buckets by consolidating price points to the nearest 10
- Reduced complexity in merchandising and planning decisions
- Enabled clearer price positioning for customers
Revenue-Based Assortment Optimization
- Analyzed revenue contribution across price points
- Removed low-performing price bands
- Focused planning on qualified, high-impact price points
Streamlined Planning Operations
- Reduced multi-day manual analysis across 20L+ rows and 250 categories
- Enabled faster decision-making within a single day
- Improved efficiency in distribution requirements planning across categories
Results: Measurable Impact Delivered by Increff
“The implementation simplified price-point strategy and improved merchandising and planning efficiency across the value chain.”
Key Outcomes Summary
- Rationalized price points across categories
- Improved demand planning and forecasting accuracy
- Simplified merchandising and planning decisions
- Faster analysis and decision-making
- Clearer vendor negotiation and sourcing strategy
Frequently Asked Questions (FAQ)
What is demand planning in retail?
Demand planning involves forecasting customer demand to guide inventory and pricing decisions.
What is merchandising and planning software?
It helps retailers optimize assortment, pricing, and inventory decisions using data.
What is distribution requirements planning (DRP)?
DRP determines how inventory should be distributed across locations based on demand.
Why are multiple price points a problem in retail?
They increase complexity in planning, analysis, and customer decision-making.
How did Increff improve price-point strategy?
By consolidating price points based on revenue contribution and demand patterns.
Which retailers benefit from price optimization solutions?
Retailers with multiple vendors and price-sensitive customer segments.
Why Increff for Merchandising and Planning?
- Data-driven demand planning and pricing strategy
- Simplified merchandising and planning decisions
- Efficient distribution requirements planning
- Reduced operational complexity
- Faster and more accurate decision-making
Ready to Optimize Your Merchandising and Planning Strategy?
Book a demo with Increff today