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Giant food stores

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Salam Thabet

Giant Food Stores faced challenges with its 30-year-old pricing system that could no longer keep up with the fast-paced grocery market. It implemented a new system from DemandTec to automate pricing decisions using point-of-sale and competitor data to model demand. The new system allows Giant to change prices weekly in response to competitors or costs, doubling its productivity. It also forecasts the impact of pricing changes. The results allow Giant to focus on profitability, customer satisfaction, and maintaining its image as an everyday low price grocery store.

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Giant Food Stores Prices CASE STUDAY 1.1 PAGE NUMBER : 14 SAlaM Thabet Doghmash 220132187
A bout Giant : 2 Giant Food Stores, a regional u.s. supermarket chain based in Carlisle, Pennsylvania. had a narrow Every Day Low Price strategy that it applied to most of the products in its stores .
The old system for Giant Food stores : The problem : The company had a 30-year-old pricing and promotion system that was very labor intensive and that could no longer keep up with the pricing decisions required in the fastpaced grocery market. The system also limited the company's ability to execute more sophisticated pricing strategies. 3
Solution for problem that caused old system : Giant Foods worked with DemandTec to deploy a system for its pricing decisions . The system is able to : - handle massive amounts of point-of-sale and competitive data to model and forecast consumer demand . - automate and streamline complex rule-based pricing schemes. - handle large numbers of price changes . The system allows Giant Foods to codify pricing rules with "narural language" sentences rather than having to go through a technician. 4
Cont.. The system also has forecasting capabilities ,These capabilities allow Giant Foods to predict the impact of pricing changes and new promotions before they hit the shelves. Giant Foods decided to implement the system for the entire store chain. 5
The results : The system has allowed Giant Foods to become more agile in its pricing. It is now able to react to competitive pricing changes or vendor cost changes on a weekly basis rather than when resources become available. Giant's productivity has doubled because it no longer has to Increase staff for pricing changes. 6
Giant now focuses on : maintaining profitability while satisfying its customer and maintaining its price image." 7
Any Question / Comment ?? 8

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Giant food stores

  • 1. Giant Food Stores Prices CASE STUDAY 1.1 PAGE NUMBER : 14 SAlaM Thabet Doghmash 220132187
  • 2. A bout Giant : 2 Giant Food Stores, a regional u.s. supermarket chain based in Carlisle, Pennsylvania. had a narrow Every Day Low Price strategy that it applied to most of the products in its stores .
  • 3. The old system for Giant Food stores : The problem : The company had a 30-year-old pricing and promotion system that was very labor intensive and that could no longer keep up with the pricing decisions required in the fastpaced grocery market. The system also limited the company's ability to execute more sophisticated pricing strategies. 3
  • 4. Solution for problem that caused old system : Giant Foods worked with DemandTec to deploy a system for its pricing decisions . The system is able to : - handle massive amounts of point-of-sale and competitive data to model and forecast consumer demand . - automate and streamline complex rule-based pricing schemes. - handle large numbers of price changes . The system allows Giant Foods to codify pricing rules with "narural language" sentences rather than having to go through a technician. 4
  • 5. Cont.. The system also has forecasting capabilities ,These capabilities allow Giant Foods to predict the impact of pricing changes and new promotions before they hit the shelves. Giant Foods decided to implement the system for the entire store chain. 5
  • 6. The results : The system has allowed Giant Foods to become more agile in its pricing. It is now able to react to competitive pricing changes or vendor cost changes on a weekly basis rather than when resources become available. Giant's productivity has doubled because it no longer has to Increase staff for pricing changes. 6
  • 7. Giant now focuses on : maintaining profitability while satisfying its customer and maintaining its price image." 7
  • 8. Any Question / Comment ?? 8