Types of Strategy

• Default Strategy

  The default strategy is a baseline pricing framework created during the initial setup and applied automatically in batch runs. Example: A retailer sets the default strategy to ensure all products maintain a minimum margin of 25% during regular pricing.

  Example: A retailer sets the default strategy to ensure all products in a particular department maintain a minimum margin of 25% during regular pricing.

• What-If Strategy

  A What-If Strategy is created when a retailer wants to test different pricing scenarios. It allows comparison against the default strategy to identify the best outcome before applying changes. After running a what-if scenario, retailers can compare its outcomes against the default strategy to determine if adjustments should be implemented.

  Example: A retailer creates a what-if strategy to test a 20% promotion on summer wear to evaluate its impact on revenue, margin, volume, and so on.

  Figure 4-5 Pricing Strategy Overview