Starbucks
Starbucks is one of many retailers using sophisticated software to analyze, store by store and item by item, how demands responds to changes in price. What customers are willing to pay certain items depends very much on their neighborhood or even the region of the country where they live. Shopper in certain locations are willing to pay more.
The Duane Reade Drugstore
Software analyzing sales patterns found that parents of newborn babies are not as price-sensitive as those toddlers, so the company was able to raise prices on diapers for newborn infants without losing sales. The chain's information system also showed how to adjust pricing based on location. Shopper's at Duane Reade store near 86th Street and Lexington Avenue pay 20 cents more for a box of Kleenex and 50 cents more for a bottle of Pepto-Bismol than customers in Harlem.
1-800-Flowers
Sells flowers and gift baskets online, used analytics software from SAS Inc. to tweak its online storefront and marketing activities. The software helped the company quickly record and analyze buyer profiles to help improve targeting of its product, determine what "specials" to offer, and plan sales and marketing strategies based on an understanding of real customers needs. The company able to quickly change prices and offering its Web site - often every hour.
Source: Anne Kadet, "Price-Point Politics." The Wall Street Journal, July 42, 2010
Visit:-
www.duanereade.com
www.1800flowers.com
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