Bottega Verde, Italy's largest natural cosmetics and beauty products company, has realized a 16 percent increase in catalogue orders and a nearly 25 percent increase in total net contribution since it began use of Price Optimization software from Teradata, a division of NCR Corporation. The results are significant for retailers interested in increasing profits without losing customers and for those facing broad market changes that affect pricing. Bottega Verde has more than 250 stores throughout Italy, an established catalogue offering and a growing eBusiness division. Bottega Verde is currently using Price Optimization to adjust product prices and inventory levels in its stores.
The Teradata Price Optimization software facilitates pricing by analyzing detailed basket level data over a period of time. By combining information from product assortment, promotional and other available data, it provides a statistical basis for pricing decisions and makes it possible to track the influence of pricing on consumer behavior. The application identifies the range for price adjustments for each product based on price elasticity, substitution and cross-selling effects, as well as margin and sales volume factors.
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