Seetarama Hegde

A segment is built by analyzing data and grouping (clustering) elements that share similar characteristics (in the case of retail demographic, expenditure, lifestyle and media preference information). Segmentation is essential for cost effectiveness and accurately targeted direct marketing.

How can analytical insights from the sales data help maximize my revenue? How can I maximize the value of my offerings to my loyal customers? Which product sells more and what is the inventory? These are some of the questions that are typically faced by retailers. Retailers also face problems like expensive store locations, slim margins and tenuous customer loyalty. A retailer even needs to consider every category while making smarter decisions and manage their businesses more effectively.

Retailing is the most active and attractive sector for last few decades. Since the onset of computers in retailing from past few years, retail executives, managers, and professionals have been challenged to find the most effective way to report information. Writing report is a complex issue since many factors must be considered.

Analytics play a pivotal role in the data flow scheme within a retail organization. A typical retailer generates more than thousands of data points through POS machine. It is difficult for a retailer to make strategic decisions based on this raw data.

Why are people brand loyal? Why branding is so important in business? What makes the brand successful? Finding answers to these questions leads to successful business which depends on repeat purchasing. It goes well beyond a logo or "look and feel" and encompasses the whole product concept - the promise of delivery, quality, and predictability. It goes beyond just letters, words, symbols, or a combination of these.

A point of sale machine is a computerized replacement for a cash register. We normally see point of sale machines in retail shops, hotels and entertainment centers put near cash counters. POS machines can be used independently or inter connected with billing counters that gives price information and billing details of a product. POS data comes in many formats txt, EDI, csv, AS2 etc.

A markdown is a reduction on price, usually to clear inventory before it becomes obsolete or needs to be removed to make way for new stock. It is a planned reduction in the selling price of an item.

Product Lifecycle shows the path of a typical new product which takes from its inception to its discontinuation. Product life cycle refers to the period from the product first launch into the market until its final withdrawal. The understanding of a product life cycle of a product can help a company to understand and to make decisions like, what is the right time to introduce the product, how to plan marketing activities and what price has to be fixed.