System and Method for Product Role Analysis

• US 20100306031A1
• Filed: 05/04/2010
• Published: 12/02/2010
• Est. Priority Date: 12/20/2000
• Status: Active Grant

• Current Assignee: Acoustic, L.P.
• Original Assignee: International Business Machines Corporation
• Inventors: Delurgio, Phil, Colten, Steve, Wu, Howard Yihzan, Kervin, Sean, Desai, Paritosh, McCauley, Sean, Gunnink, Jason Lee
• Granted Patent: US 9,773,250 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data

Abstract

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.

Claims

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 may be 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; and

generating a role analysis for each product of the plurality of products utilizing the comparison of the elasticity value and the volume data, wherein the role analysis includes identifying at least one key value item of the plurality of products.

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 the other axis.

8. The method as recited in claim 4, wherein the generating the role analysis for each product includes generating an image value for each product using the comparison of the relative elasticity and the relative volume, and wherein the image value is generated by multiplying at least one of the relative elasticity, normalized elasticity, maximum elasticity and average elasticity by at least one of the relative volume, normalized volume, maximum volume and average volume.

9. The method as recited in claim 8, wherein the image value is generated by the equation:

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. 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 may be assigned to one of a plurality of product categories;

an elasticity analyzer configured to receive elasticity values for the plurality of products; and

a plotting engine 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 role analysis includes identifying at least one key value item of the plurality of products.

12. The roles analysis system recited in claim 11, 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.

13. The roles analysis system recited in claim 11, 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.

14. The roles analysis system recited in claim 11, 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.

15. The roles analysis system recited in claim 14, 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.

16. The roles analysis system recited in claim 15, 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.

17. The roles analysis system recited in claim 14, 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 the other axis.

18. The roles analysis system recited in claim 14, wherein the generating the role analysis for each product includes generating an image value for each product using the comparison of the relative elasticity and the relative volume, and wherein the image value is generated by multiplying at least one of the relative elasticity, normalized elasticity, maximum elasticity and average elasticity by at least one of the relative volume, normalized volume, maximum volume and average volume.

19. The roles analysis system recited in claim 18, wherein the image value is generated by the equation:

20. The roles analysis system recited in claim 11, further comprising a competitor price comparator 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.