Architecture and methods for generating intelligent offers with dynamic base prices
Methods and apparatus for generating intelligent offers with base prices are provided. In one embodiment, a promotion generator receives a current product base price, and also receives or calculates a remaining promotional program budget, a remaining promotional program duration, and a minimum discounted price for the product using the current product base price and any available previous base price data for the promoted product, creating or updating a predictive model of future product base prices.
1. A computer-implemented method for managing a promotional program for a product, the promotional program having an associated budget and duration that may be subdivided into time units, the product having a base price that may vary over time, the method comprising:
receiving or calculating:
a remaining promotional program budget;
a remaining promotional program duration; and
generating a model, using predictive analytic techniques, of how a product base price varies over time, as commodity and stock levels fluctuate;
calculating a plurality of future product base prices, each future base price corresponding to a week t within the remaining promotional program duration, using the model; and
calculating a plurality of discounts each discount for the week t, and each discount optimized to maximize a sales volume for each given week t, subject to the following constraints:
i) one minus each of the plurality of discounts multiplied by the associated future base price to yield a first metric, wherein the first metric is above the minimum discounted price; and
ii) the discount for week t multiplied by the associated base price for week t multiplied by the associated sales volume for week t summed over the weeks t equal to 1 to n to yield a second metric, wherein the second metric is below the remaining promotional budget.
2. The computer-implemented method of claim 1 wherein said promotion program is administered iteratively to a plurality of segmented subpopulations of consumers.
3. The computer-implemented method of claim 1 wherein responses to the promotional program are received via smart phones.
4. The computer-implemented method of claim 2 wherein said plurality of segmented populations represent users of online social media.
5. The computer-implemented method of claim 1 wherein said promotion program is automatically generated.
6. The computer-implemented method of claim 2 wherein said plurality of segmented populations represents purposefully segmented subpopulations.
7. The computer-implemented method of claim 1 wherein said promotion program includes an electronic coupon.
8. The computer-implemented method of claim 7 wherein said electronic coupon is presented in an online account.
9. The computer-implemented method of claim 8 wherein said online account represents an individual consumer's account.
10. The computer-implemented method of claim 7 wherein said electronic coupon to be displayed on a smart phone for redemption.