logo-whitelogo-normallogo-whitelogo-normal
  • CONSULTING
    • Custom Analytics
    • Marketing Analytics
    • Customer Analytics
    • Alteryx
  • RECENT PROJECTS
  • WHITE PAPERS
  • CONTACT
Empty Threats, Brinkmanship, and MAP
October 21, 2014
Improving Print Circular: more wins or fewer losses?
May 15, 2016
Categories
  • Pricing
Tags
  • key value items
  • KVI
  • merchandising
  • pricing
  • retail

In prior posts we’ve discussed the varying definitions of the Key Value Item (KVI) in retail.  Setting aside the important differences, the core principle remains: KVIs are the most important SKUs in the assortment.  And these items often warrant special treatment: competitive price monitoring, out-of-stock warnings, and other automated pricing monitoring.

We’ve worked with many retailers to build and maintain a list of their KVIs as top priority SKUs.  And while every retail sector has its own specifics, there are a few general themes that can help identify your KVIs.

SKU-Level:

  • Must be high coverage (Stores selling)
  • Exclusive or Private Label, if applicable
  • Whether Price Constraints apply (MAP or otherwise)

Category:

  • Share vs. Competition, if available
  • Trend (Comps and Share)
  • Frequency of Shop

Financials:

  • GM %: useful to monitor, but does not bear on whether is a KVI
  • Markdown Frequency and Depth: KVIs are not typically hi/low priced
  • Advertised vs. Unadvertised discounting mix

Velocity

  • Total Sales, as a measure of importance
  • Seasonality (peak to average): useful to diagnose trends

Customer:

  • High Breadth of Customers
  • High Customer Item Frequency relative
  • Customer Research Levels (from web metrics)
  • Lead Item % (from transactions, web, or survey)

Elasticity

  • Base Price elasticity
  • Promotion elasticity

Within each of these categories there’s the work of finding the actual datasets, metric calculations, balancing, and validation of the resulting lists to be done.  Give us a shout, we’d love to help.

What can we help you build, streamline, or improve?
Contact Us
Contact Information
306 S. Washington Ave
Suite 218
Royal Oak, 48067
Call Us
203-200-0015
© 2023 PENFIELD CONSULTING
© 2023 PENFIELD. All Rights Reserved. Muffin group