With the advent of large-size format retailing, the complexity of demand estimation has increased manifold. The availability of choice for consumers has translated into thousands of different types of categories, subcategories, fine-lines and SKUs to be managed by companies. All these product lines have different pricing needs that are dependent on changing circumstances and the relative choice between products that consumers use to determine their final purchase.

TEG demand elasticity solutions unravel the sensitivity in the relation between price and demand and recommend the relevant business action that will achieve strategic objectives. More elastic products with high margins could create the difference between survival vs. failure in the highly competitive retail environment. Less elastic products with high margins could give a significant boost to the company’s profits if supported optimally.

The challenge of offering the right product at the right place at the right time to the right consumer group leads to significant inventory challenges over a period of time. Markdowns are a tactical tool to optimize inventory levels and maximize profits. With companies inventory policies (and hence profits) influenced heavily by seasonality, perishable nature of product, frequent product up-gradations etc. markdowns become an important piece in the pricing jigsaw.

Unlike traditional heuristics based markdown planning, TEG markdown analysis uses our demand elasticity expertise and incorporates localized perspective to achieve optimal results. Using it companies can create a comprehensive markdown plan and remove the guesswork from how deep, when and where to take markdowns.

212 degree Fahrenheit is the separation point between boiling and warm water. 211 degree does not do it. Nature’s laws work and cannot be fought against – even in a business environment. An understanding of the 212 degree in different aspects of your business operations can separate success from failure.

TEG uses the tipping point theory to identify, track and analyse the product adoption life-cyle. We quantify when demand and market share will take the upswing (or downturn) and the potential growth or exit strategy required when that happens. Being able to align key business investments based on the above understanding becomes a critical driver of overall profitability.

Scenario planning is the process in which managers invent and then consider, in depth, several varied scenarios of equally plausible futures with the objective to bring forward surprises and unexpected leaps of understanding. Analytics plays a key role in bringing these scenarios to life and help simulate the associated business decisions in advance.

TEG scenario planning methodology not only captures all the variables in the environment, it also uses advanced modellingmodeling to help you identify the strongest driving forces and quantify the critical uncertainitiesuncertainties. After the different scenarios have been finished and their implication for the decision determined, then a few indicators are selected, to monitor the strategy or decision in an on-going way. Monitoring these indicators will allow your company to know what the future holds and how that future is likely to affect strategies and decisions in the industry.