Price Optimization at Northern Group Retail

            
 
Case Studies in Business Marketing

ICMR HOME | Case Studies Collection

Case Details:

Case Code : MKTG085
Case Length : 9 Pages
Period : 2002-2003
Pub Date : 2005
Teaching Note : Available
Organization : Northern Group Retail
Retail ing
Countries : Canada

To download Price Optimization at Northern Group Retail case study (Case Code: MKTG085) click on the button below, and select the case from the list of available cases:

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

» Marketing Case Studies
» Marketing Management Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Excerpts

The Northern Group under York

Soon after taking over the Northern Group, York conducted a research to analyze the reasons for the poor performance of the stores. The analysis revealed that the Northern Group brands had a loyal customer following and good brand recognition in Canada. The poor performance was a result of inefficient internal processes. Too many retail locations also diluted the brand...

The Price Optimization System

York implemented a price optimization software called Pricing4Profit, which was developed by a company called ProfitLogic.

The integration of the software with the business processes used at Northern Group began in August 2002 and continued upto mid-September.

Northern Group provided ProfitLogic with three years of SKU data to allow the software vendor to establish a pattern for inventory movement and develop predictive models.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Northern Group also installed a new Sun platform in the company's technical environment to run the new technology (Refer Exhibit-II). After dealing with tool interaction and configuration needs, ProfitLogic began a four-week project of adjusting the analytical engine of the software to meet the specific needs of Northern Group.

Within that time frame the retailer finalized business process, tested strategies and developed training materials to accelerate the deployment of technology in the company. The new technology was formally rolled out in mid-November...

Benefits Obtained

Northern Group obtained significant benefits through the implementation of price optimization software. Firstly, it allowed the company to maximize returns and obtain the highest margins possible, by providing a scientific tool which determined the ideal prices at which to sell the given merchandize. The price was fixed on the level of demand that the software expected for the merchandize. If it anticipated that the demand would fall, it recommended a corresponding lowering of prices, so that customers were always offered what they were ready to pay for a given item at a given time...

Exhibits

Exhibit I: The Northern Group Brands
Exhibit II: The Technology Environment at Northern Group
Exhibit III: The Future of Price Optimization Applications


Custom Search

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Text Books, Work Books, Case Study Volumes.