The SAP for Retail solution portfolio consists of a suite of applications that help you optimize your pricing, promotion, merchandising, and markdown activities: SAP Price Optimization, SAP Promotion Optimization and Merchandising Layout, and SAP Markdown Optimization.

Across a range of strategies, including high/low and everyday low price (EDLP), SAP helps you arrive at better price, promotion, and markdown recommendations with less user intervention and more consistent performance. You can implement a single component or a fully integrated suite to manage the entire pricing life cycle.

SAP Price Optimization

The SAP Price Optimization application uses advanced analytics to determine the initial price and manage the optimal base price throughout the pricing life cycle, based on your unique customer-demand patterns. It examines your customer patterns down to the store-SKU level – segmented by customer if loyalty programs are in use. SAP Price Optimization then generates the best combination of prices to meet your category goals.

With SAP Price Optimization, you can:

• Determine the best role for categories – profit builder, turf protector, and so on – given shopper preferences
• Maintain category objectives by adjusting regular everyday prices in conjunction with promotions and clearance or markdown prices
• Improve decision support with "what if" analysis to see the impact of pricing on sales, profit, and price image for any SKU across the assortment

SAP Promotion Optimization and Merchandising Layout

The SAP Promotion Optimization and Merchandising Layout package helps you plan, measure, and optimize promotional campaigns. Retailers can determine the best product and offer mix for your promotions, combined with an item-level forecast. No other application today provides this comprehensive capability.

Using SAP Promotion Optimization and Merchandising Layout, you can:

• Create promotions with the best combination of items and offers to meet event objectives
• Analyze vendor deals in conjunction with promotion planning
• Measure results of promotions prior to execution
• Easily manage concurrent promotions in multiple price zones and languages
• Forecast sales and perform analysis to optimize future promotions

SAP Markdown Optimization

The SAP Markdown Optimization application helps you profitably manage seasonal, fashion, and discontinued inventory. You can manage the markdown process from the first sale, through promotional markdowns, all the way to inventory closeout to gain maximum competitiveness, profitability, and attainment of inventory levels.

In addition, SAP Markdown Optimization enables you to:

• Determine items to mark down for maximum impact
• Identify when the markdowns should occur and in which stores
• Select discount levels based on inventory goals
• Identify minimum presentation levels and required stock levels to better manage inventory