Product role analysis
View Patent ↗The present invention relates to a system and method for analyzing product roles. The system receives a listing of products for classification into roles. The system receives volume data for each item, as well as demand coefficient. Elasticity of the products may be determined from the demand coefficients. Product volumes and elasticities may then be compared against one another by graphing the product by its volume versus elasticity. From this comparison the products may be classified into one or more roles. These roles include image items, niche products, assortment completers, and profit drivers. The assortment completer role is populated with products which have high relative elasticity and low relative volume. Niche product role is populated with products which have low relative elasticity and low relative volume. The image item role is populated with products which have high relative elasticity and high relative volume. And lastly, the profit driver role is populated with products which have low relative elasticity and high relative volume. This comparison may also include generating an “image value” for the product.
1. A computer implemented method for analyzing product roles, useful in conjunction with a pricing optimization system, the method comprising:
receiving volume data for a plurality of products, wherein the volume data is sales volume for each product of the plurality of products over a given timeframe, and further wherein each product of the plurality of products is assigned to one of a plurality of product categories;
receiving elasticity values for the plurality of products;
comparing the elasticity value and the volume data for each product;
generating a role analysis, by a processor, for each product of the plurality of products utilizing the comparison of the elasticity value and the volume data, wherein the generating a role analysis includes calculating an image value for each product by applying at least one constant value to a combination of the elasticity value for said product divided by an average elasticity value for the product category corresponding to said product, and the volume of the product divided by an average volume for the product category corresponding to said product, and identifying at least one key value item of the plurality of products based upon the image value; and
generating, by a processor, a markdown plan including a set of prices, promotions and schedules based on the image values and demand coefficients, wherein generating the markdown plan includes:
monitoring processing of the processor generating the markdown plan to detect increased processing requirements; and
controlling processing time of the processor generating the markdown plan in response to detection of increased processing requirements by selectively adjusting performance of operations to produce the demand coefficients with a lesser degree of accuracy based on a quantity of products being processed to reduce the processing requirements, wherein the increased processing requirements generate the demand coefficients with more accuracy than the reduced processing requirements.
2. The method as recited in claim 1 , further comprising:
determining category sales volume for each of the plurality of product categories;
determining category elasticity for each of the plurality of product categories;
comparing category sales volume and category elasticity for each of the plurality of product categories; and
generating a category role analysis for each of the plurality of product categories utilizing the comparison of the category elasticity and the category sales volume.
3. The method as recited in claim 1 , wherein the sales volume is at least one of an average sales volume, a normalized volume, and a max volume modifier for each product of the plurality of products over a given timeframe.
4. The method as recited in claim 1 , further comprising:
generating a relative elasticity for each product using the received elasticity values; and
generating a relative volume for each product using the sales volume.
5. The method as recited in claim 4 , wherein the role analysis for each product includes classifying each product into one of a product role, and wherein the product roles include assortment completers, niche products, image items and profit drivers.
6. The method as recited in claim 5 , wherein the assortment completer role is populated with products which have high relative elasticity and low relative volume, and wherein the niche product role is populated with products which have low relative elasticity and low relative volume, and wherein the image item role is populated with products which have high relative elasticity and high relative volume, and wherein the profit driver role is populated with products which have low relative elasticity and high relative volume.
7. The method as recited in claim 4 , wherein the generating the role analysis for each product includes plotting the plurality of products on a graph of relative elasticity along one axis and relative volume on another axis.
8. The method as recited in claim 4 , wherein the image value is generated by combining at least one of relative elasticity, normalized elasticity, maximum elasticity and average elasticity with at least one of relative volume, normalized volume, maximum volume and average volume.
9. The method as recited in claim 8 , wherein the image value is generated by an equation:
imagevalue
=
a
1
×
E
n
Ave
(
E
n
)
+
a
2
×
V
n
Ave
(
V
n
)
;
where:
E n =elasticity for product n;
V n =volume of product n;
Ave(E n )=average elasticity of all products within the category of product n;
Ave(V n )=average volume of all products within the category of product n; and
a 1 and a 2 =constants greater than zero.
10. The method as recited in claim 1 , further comprising:
receiving a list of client key value items; and
comparing the client key value items to the identified at least one key value item.
11. The method as recited in claim 1 , further comprising:
analyzing data by a processor and determining demand coefficients including the elasticity values from the analyzed data, wherein the analyzing comprises:
reducing a processing time of the processor performing the analyzing by aggregating products within the data and processing the aggregated products as a single product.
12. The method as recited in claim 1 , wherein controlling processing time of the processor generating the markdown plan further comprises:
selectively excluding cross elasticity models to produce the demand coefficients with the lesser degree of accuracy based on the quantity of products being processed to reduce the processing requirements.
13. A roles analysis system for analyzing the role of a product, useful in conjunction with a pricing optimization system, the roles analysis system comprising:
a volume analyzer configured to receive volume data for a plurality of products, wherein the volume data is sales volume for each product of the plurality of products over a given timeframe, and further wherein each product of the plurality of products is assigned to one of a plurality of product categories;
an elasticity analyzer, including a processor, configured to receive elasticity values for the plurality of products;
a plotting engine, including a processor, configured to compare the elasticity value and the volume data for each product of the plurality of products, and wherein the plotting engine is further configured to generate a role analysis for each product utilizing the comparison of the elasticity value and the volume data, wherein the generating a role analysis includes calculating an image value for each product by applying at least one constant value to a combination of the elasticity value for said product divided by an average elasticity value for the product category corresponding to said product, and the volume of the product divided by an average volume for the product category corresponding to said product, and identifying at least one key value item of the plurality of products based upon the image value; and
a markdown plan tuner, including a processor, configured to generate a markdown plan including a set of prices, promotions and schedules based on the image values and demand coefficients, wherein generating the markdown plan includes:
monitoring processing of the processor of the markdown plan tuner to detect increased processing requirements; and
controlling processing time of the processor of the markdown plan tuner in response to detection of increased processing requirements by selectively adjusting performance of operations to produce the demand coefficients with a lesser degree of accuracy based on a quantity of products being processed to reduce the processing requirements, wherein the increased processing requirements generate the demand coefficients with more accuracy than the reduced processing requirements.
14. The roles analysis system recited in claim 13 , wherein the volume analyzer is further configured to determine category sales volume for each of the plurality of product categories, and wherein the elasticity analyzer is further configured to determine category elasticity for each of the plurality of product categories, and wherein the plotting engine is further configured to compare category sales volume and category elasticity for each of the plurality of product categories, and wherein the plotting engine is further configured to generate a category role analysis for each of the plurality of product categories utilizing the comparison of the category elasticity and the category sales volume.
15. The roles analysis system recited in claim 13 , wherein the sales volume is at least one of an average sales volume, a normalized volume, and a max volume modifier for each product of the plurality of products over a given timeframe.
16. The roles analysis system recited in claim 13 , wherein the elasticity analyzer is further configured to generate a relative elasticity for each product using the received elasticity values, and wherein the volume analyzer is further configured to generate a relative volume for each product using the sales volume.
17. The roles analysis system recited in claim 16 , wherein the role analysis for each product includes classifying each product into one of a product role, and wherein the product roles include assortment completers, niche products, image items and profit drivers.
18. The roles analysis system recited in claim 17 , wherein the assortment completer role is populated with products which have high relative elasticity and low relative volume, and wherein the niche product role is populated with products which have low relative elasticity and low relative volume, and wherein the image item role is populated with products which have high relative elasticity and high relative volume, and wherein the profit driver role is populated with products which have low relative elasticity and high relative volume.
19. The roles analysis system recited in claim 16 , wherein the generating the role analysis for each product includes plotting the plurality of products on a graph of relative elasticity along one axis and relative volume on another axis.
20. The roles analysis system recited in claim 16 , wherein the image value is generated by combining at least one of relative elasticity, normalized elasticity, maximum elasticity and average elasticity with at least one of relative volume, normalized volume, maximum volume and average volume.
21. The roles analysis system recited in claim 20 , wherein the image value is generated by an equation:
imagevalue
=
a
1
×
E
n
Ave
(
E
n
)
+
a
2
×
V
n
Ave
(
V
n
)
;
where:
E n =elasticity for product n;
V n =volume of product n;
Ave(E n )=average elasticity of all products within the category of product n;
Ave(V n )=average volume of all products within the category of product n; and
a 1 and a 2 =constants greater than zero.
22. The roles analysis system recited in claim 13 , further comprising a key value item plotter configured to receive a list of client key value items, and compare the client key value items to the identified at least one key value item.
23. A computer storage product for analyzing product roles comprising:
a non-transitory computer readable medium having computer readable program code embodied therewith, the computer readable program code comprising computer readable program code when executed by a processor configured to:
receive volume data for a plurality of products, wherein the volume data is sales volume for each product of the plurality of products over a given timeframe, and further wherein each product of the plurality of products is assigned to one of a plurality of product categories;
receive elasticity values for the plurality of products;
compare the elasticity value and the volume data for each product;
generate a role analysis for each product of the plurality of products utilizing the comparison of the elasticity value and the volume data, wherein the generating a role analysis includes calculating an image value for each product by applying at least one constant value to a combination of the elasticity value for said product divided by an average elasticity value for the product category corresponding to said product, and the volume of the product divided by an average volume for the product category corresponding to said product, and identifying at least one key value item of the plurality of products based upon the image value; and
generate a markdown plan including a set of prices, promotions and schedules based on the image values and demand coefficients, wherein generating the markdown plan includes:
monitoring processing of the processor generating the markdown plan to detect increased processing requirements; and
controlling processing time of the processor generating the markdown plan in response to detection of increased processing requirements by selectively adjusting performance of operations to produce the demand coefficients with a lesser degree of accuracy based on a quantity of products being processed to reduce the processing requirements wherein the increased processing requirements generate the demand coefficients with more accuracy than the reduced processing requirements.
24. The computer storage product recited in claim 23 , wherein the computer readable program code further comprises computer readable program code configured to:
determine category sales volume for each of the plurality of product categories;
determine category elasticity for each of the plurality of product categories;
compare category sales volume and category elasticity for each of the plurality of product categories; and
generate a category role analysis for each of the plurality of product categories utilizing the comparison of the category elasticity and the category sales volume.
25. The computer storage product recited in claim 23 , wherein the sales volume is at least one of an average sales volume, a normalized volume, and a max volume modifier for each product of the plurality of products over a given timeframe.
26. The computer storage product recited in claim 23 , wherein the computer readable program code further comprises computer readable program code configured to:
generate a relative elasticity for each product using the received elasticity values; and
generate a relative volume for each product using the sales volume.
27. The computer storage product recited in claim 26 , wherein the role analysis for each product includes classifying each product into one of a product role, and wherein the product roles include assortment completers, niche products, image items and profit drivers.
28. The computer storage product recited in claim 27 , wherein the assortment completer role is populated with products which have high relative elasticity and low relative volume, and wherein the niche product role is populated with products which have low relative elasticity and low relative volume, and wherein the image item role is populated with products which have high relative elasticity and high relative volume, and wherein the profit driver role is populated with products which have low relative elasticity and high relative volume.
29. The computer storage product recited in claim 26 , wherein the generating the role analysis for each product includes plotting the plurality of products on a graph of relative elasticity along one axis and relative volume on another axis.
30. The computer storage product recited in claim 26 , wherein the image value is generated by combining at least one of relative elasticity, normalized elasticity, maximum elasticity and average elasticity with at least one of relative volume, normalized volume, maximum volume and average volume.
31. The computer storage product recited in claim 30 , wherein the image value is generated by an equation:
imagevalue
=
a
1
×
E
n
Ave
(
E
n
)
+
a
2
×
V
n
Ave
(
V
n
)
;
where:
E n =elasticity for product n;
V n =volume of product n;
Ave(E n )=average elasticity of all products within the category of product n;
Ave(V n )=average volume of all products within the category of product n; and
a 1 and a 2 =constants greater than zero.
32. The computer storage product recited in claim 23 , wherein the computer readable program code further comprises computer readable program code configured to:
receive a list of client key value items; and
compare the client key value items to the identified at least one key value item.