Category (Cannibalization)
Demand Manager™
CDM Features
• Multi-item demand elasticity (Neural Networks)
• Three levels of multi-item prediction
• Extensive reporting
• Extreme scalability
• Broad integration capabilities
CDM Benefits
• Understand impact of pricing/promo on related items
• Ability to recommend effective items for promotion
• Enables store-specific forecasting for large retailers
• Integrates with customer’s existing planning software
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. For example: What is the effect on category sales and margin when Brand X is placed on promotion and/or its price is changed? How will Brand Z and/or the Retailer's Private Labels be affected? Churchill’s Category Demand Forecaster™ (CDF) software addresses the effects of new product introductions, pricing and promotions on a total category or subcategory’s related items.
Implementation of Category Demand Forecaster generally occurs in three phases:
• Static Analytics
• Category Impact
• Cross Elasticity Impact
Each level of implementation brings about an increase in the accuracy of determining the effects of pricing, promotions and new item introduction on the entire category.