Process Overview
Process Overview
AiM’s AI & analytics platform finds all the relationships and patterns in your EPOS data (how shoppers shop the category) and turn that into accurate predictive tools in 3 simple steps.
- Load the data
- Cleanse and crunch the data
- Populate the platform for use.
Our unique AI and analytic processes use Non-Linear Elasticities (not a single Elasticity Number or straight line uplift) which are crucial to maximise volume prediction accuracy.
Then you can instantly see:
Where you are:
Is my product’s Brand (EAR) Equity at Retail) strong enough or does it have a problem or need branding investment. More research may be required to establish the problems.
Where you could be:
What could we get if we optimised all our pricing ( Volume and Profit Pool change ) versus current.
How to get here and Plan to achieve it:
What are the optimum details and what results would we get from any scenarios. Includes all negotiation points and a full P&L for supplier and retailer.
Measure Brand EAR (Equity at Retail)
Measure Brand EAR (Equity at Retail)
If your brand isn’t strong enough, you won’t get a good ROI from Pricing activity. See if your products/brands are or need investment.
Brand EAR (Equity at Retail) Matrix shows the latest SKU strength measure and the growth trend for each SKU and versus the category (red lines and star = category average). Top-right sector = strong position (Price Increase?). All others Equity Investment Required.
Price and Profit Elasticities
Price and Profit Elasticities
Brand or Portfolio View of Elasticity shows which SKUs are and are not elastic enough to increase volume or profit if the Average Realised Price is reduced. i.e. which to promote and which not to.
See which of your products/SKUs are elastic enough to promote profitably and by how much. Crucial that you use ‘Non-Linear’ elasticities (not a straight line) for accuracy. Check how you do it currently. Add commercial info and see the Profit Elasticity = where to make profit.
Optimising Pricing and Promotions
Optimising Pricing and Promotions
SKU Optimum Profit Pool: Find optimum pricing for maximum profit (Total, brand and retailer split) incl. volume & baselines. Previous activity is also evaluated giving automated baselines and uplifts by product to improve future planning.
Every product/SKU reacts to price changes and promotions differently. AiM’s platform shows your optimum pricing and terms along with automated promo. uplift and baseline volumes. Instantly.
Automated impact of Terms / COGS changes
Automated impact of Terms / COGS changes
Trading Terms are crucial to create and ensure profits (and avoid unexpected financial impacts) for both annual agreements and each promotional activity. When your COGS (Costs Of Goods Sold) or Pricing changes, your ‘Optimum’ Trading Terms will change. AiM’s predictive tool instantly shows what will happen in any scenario, so what to agree to or say no to.
See what new retail sell-in price (or nett pricing) is required to maintain your pre-increase profits. See how any element in the P&L is impacted before starting negotiations.
Difficult calculations are now able to be instantly done in the platform due to the volumes being automatically predicted. An example would be the minimum and maximum contribution a supplier should make to a retailer to maintain either the supplier’s or the retailers current cash profit (not % margin). Anything between the min and max is a Win-Win for both sides.
Without the accurate predictive capabilities, this cannot be previously calculated.
Use the platform to get the deeper insights before planning or agreeing new terms.
Promotional Effectiveness and Baselines
Promotional Effectiveness and Baselines
To understand promotional uplift, you first need to establish normal baseline volumes.
AiM-OPTIMISERTM automatically takes into account all pricing, distribution, seasonality and promotional activity versus non-promo weeks to establish the base volumes by week.
Promotional activity results are then calculated during automated PEA (Post Event Analysis) and logged in the platform to be used to amend volume uplifts for specific planned activities in addition to just a price move.
Automatically see the uplift from previous promotional activity and redemption rates for Multi-buys. Use these uplifts in your planning for more accurate and profitable plans.
Maximise your promotional effectiveness with AiM
Maximise your promotional effectiveness with AiM
We show FMCG brands how to make better commercial decisions in order to increase profit. Using expertise in Customer and Category Management, Trade Promotion Optimisation (TPO), Shopper Insights & Revenue Growth Management, these predictive AI tools show precisely what to do to increase profits on your SKUs.