"The alphabet of Taste" optimizes the prices using IBM Commerce

In January, 2016 IBM announced that Alphabet of Taste will use cloud analytical solutions of IBM for pricing process optimization. The retail chain stores numbering 100 retail outlets in Moscow, St. Petersburg, the Moscow and Leningrad regions will be able to offer the prices based on the analysis of consumer behavior that will allow to increase sales volume and to raise a customer loyalty.

As a result of optimization of the prices Alphabet of Taste recorded a gain of the gross profit from 2 to 3% on different categories cleaned from seasonality and promo-activity. Specialists of Alphabet of Taste also state forecast accuracy according to basic price scenarios at the level of higher than 90% that speaks about capability of the analytical IBM Commerce tools to adapt according to quickly changing realities of the Russian market.

"Earlier during the work with thousands of product names we had to sort goods by means of a complex system of pricing with limited access to technologies, tools and quantitative measurements. Calculate the price of specific goods during a certain time frame was an uncommon task, – Galina Yashchuk, the marketing director of Alphabet of Taste company says. – The solution of IBM allowed us to start the single system of pricing providing us with the valuable analytical outputs necessary for expansion of business, increase in sales volumes and achievement of the planned profit level".

The solution for optimization of the prices which is a part of the IBM Omni-channel Merchandising portfolio allowed Alphabet of Taste to replace non-automated instruments of forecasting and pricing for a single cloud analytical platform. It gave the chance to increase the speed of reaction to all changes of the sales demand and price level of local competitors and to provide to heads in the field of merchandising, marketing and business development in the unified type information on sales volumes and profit level at the level of each goods and group of shops. The received valuable analytical outputs allow to optimize regional and multichannel strategy that, in turn, helps to give more exact sales forecast, expands an arsenal of a handshaking with buyers and accelerates process of an entry into the new markets.