Cannibalization Demand Forecaster™ (CANN)
Effectively predict the impact of demand on related items, as well as items within a category.
Churchill's Cannibalization Demand Forecaster™ (CANN)
Understand the True Impact of Merchandise Actions
Promotional actions of a single item or line can often have an impact — positive or negative — on the sales or margins of the total category. While much of today’s focus is on the planning, forecasting, analysis and optimization of lines or single items demand, the real story can only be told when we understand the impact of promotional actions on the demand of the entire category.
Therefore, Retailer planners must ask themselves:
- How will a change to one item impact the demand for related items?
- Will my promotion or markdown strategy achieve my goals for the Category?
- Is my Assortment in line with my demand? Too many lines? What if I add a new style?
Challenge
See the Bigger Picture in Demand Forecasting
What happens to forecasted demand when Brand A toothpaste is discounted or its price adjusted? How will Brand B and the store’s Private Label toothpaste sales respond? What is the overall impact on the oral care category?
Churchill’s Cannibalization Demand Forecaster™ (CANN) software addresses the effects of new product introductions, pricing and promotions on a category’s related items. CANN is a fully integrated solution within Churchill’s Demand Forecast Manager.
Solution
Anticipating Demand Shifts Across the Entire Category
To accelerate the deployment and maximize the effectiveness of the Cannibalization Demand Forecaster™ (CANN), Churchill Systems offers a structured, phased implementation approach. Each phase adds increasing levels of precision in forecasting, empowering retailers to better understand and respond to category-wide impacts.
Static Analytics
Foundational data analysis to understand baseline sales metrics.
Category Impact Analysis
Evaluate how changes in one product’s performance impact the sales of related items within the category.
Cross Elasticity Impact
Assess the broader interactions between products to measure the full effect of pricing, promotions, and new product introductions on category demand.
Your Solution for Accurate, Scalable Demand Forecasting
Churchill’s Cannibalization Demand Forecaster™ (CANN) provides comprehensive insights into how changes in demand for one product can influence others within the same category. This powerful solution offers benefits that enable retailers to make data-driven decisions across the entire category, optimize inventory, and effectively manage promotional activities.