Retail Price Optimization Solutions Seen Still Emerging

No one solution provider leads pricing throughout the product lifecycle, Forrester finds

  • Initial pricing — recommends category- and store-level prices to meet corporate objectives. Khimetrics edged out DemandTec in functionality in Forrester's evalutation.

  • Promotions pricing — analyzes results from past promotions and their effectiveness and recommends the optimal promotional event throughout different phases of the product's life. Khimetrics is the clear leader, according to Forrester.

  • Markdown pricing — determines the best method for clearing inventory at the end of a season or end of life of a product. i2 is ahead of supply chain competitor, Manugistics, Forrester said.

  • Overall pricing — offers overall visibility and recommends optimal pricing along the entire product lifecycle. Retek led for the full suite offering, based on Forrester's analysis.

For more information on price optimization solutions from both the buy- and sell-side perspectives, see the two-part series "Finding the 'Right' Price" in the July 2001 (sell-side) and August 2001 (buy-side) issues of iSource Business (now Supply & Demand Chain Executive) magazine.