08 Oct 2015

How Retailers can stop wasting their promotional dollars

Raj Bhatt

As I had described in my previous article, most retailers don’t optimize their promotions. This leads to billions of dollars of wasted promotional spending, that erodes retail bottom-lines. So how can retailers optimize their retail promotions? Here is a 4-step process for doing so: Step 1: Collect and understand the data In the first step, we [...]

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08 Oct 2015

Optimizing promotions: Why retailers don’t get it!

Raj Bhatt

Promotions are an important driver of sales for most retailers. In any given week, most retailers have a range of offers/ discounts being given on a range of products across categories. The offers vary from a straight percentage discount, a certain dollars off, a freebie (Get Product A free with Product B), Buy X Get [...]

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13 Apr 2013

My 2 bits about the Bitcoin phenomenon

Raj Bhatt

There is a lot of discussion about the BitCoin, the digital currency which is to be issued in finite quantity (21 MM Bitcoins in the next few years). The BitCoin has seen a sudden rise (and then a significant reversal) in its value over the past 2 months. People who try to justify the value [...]

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11 Feb 2013

Sign-up discounts: Bad strategy for eCommerce firms

Raj Bhatt

A lot of eCommerce players in the Indian eCommerce industry offer  up to 25% discount coupons on sign-up which give discounts up to Rs. 2000 (~$35). These include Jabong, Myntra, and fashionara, among others. The logic that these players might be using for this strategy may be:1) The discount coupons allow them to acquire new [...]

acquisition, coupons, CPA, discount, Ecommerce, fashionara, gross margin, India, Jabong, loyalty, Myntra, pricing

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07 Feb 2013

Retail discounts and the illusion of success

Raj Bhatt

I came across a blog post for a retail software product (which I will not name here), which said the following: “We have achieved great success with our product implementation at a European online auto parts retailer. Our product was able to deliver a 15% sales lift with an effective discounting of only 2.17%…” I [...]

analytics, breakeven, discounts, Ecommerce, price comparison, promotions, retail, strategy

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04 Feb 2013

JC Penney’s pricing experiments (continued)

Raj Bhatt

I had written about JC Penney’s failed experiments with reducing discount sales a few weeks ago (click here). I had made 4 points:1) Everyday Low Price needs to be tested before being implemented2) Need to continue store-in-store concept3) Need good exclusive designers4) Website needs major overhaul I heard that they are getting discount sales back [...]

discounts, EDLP, JC Penney, JCP, pricing

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14 Nov 2012

JC Penney’s experiments with pricing and holiday season discounting

Raj Bhatt

Around a year ago, JC Penney’s CEO Ron Johnson announced their ‘Fair and Square ‘ pricing policy, to wean customers off discounts and move towards a three-tiered pricing strategy that focused on ‘Everyday Low’, ‘Monthly’ and ‘Best’ price levels. This was supposed to reduce the number of annual promotions from 590 to 12, thereby simplifying [...]

discounting, everyday low pricing, JC Penney, pricing, recommendation engine

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31 Aug 2012

Will Windows 8 hybrids kill laptops and ultrabooks?

Raj Bhatt

Most PC companies are lining up tablets, hybrids and Touch-screen ultrabooks using the Windows 8 and Windows RT operating systems to be launched in October 2012 (click here for a Technically Personal article on the topic). I wonder whether the Windows 8 hybrids will kill the Ultrabooks category? and what will happen to good old [...]

desktop, HP, hybrid, laptop, pricing, Samsung Series 7, Spectre XT, SSD, tablet, ultrabook, Windows 8

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24 Aug 2012

What should Best Buy do to survive?…part deux

Raj Bhatt

I blogged recently about Best Buy’s problems and what I think it should do (click here). Best Buy has come up with a new branding, service and store layout strategy in June (explained here in an Ad Age article).  Their new tagline is “Making technology work for you”. They will change store layouts to aid [...]

Best Buy, brand identity, branding, communication, differentiation, survive

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22 Aug 2012

What should Best Buy do to survive?

Raj Bhatt

Best Buy just announced a bad Q2 (click here). Same store sales are down in the US and significantly down internationally. Their operating income has shrunk 87% on falling margins and rising SG&A. Their services, mobile and tablets sales are the only bright spots in a fairly sad story on declining TV, gaming and computer [...]

Best Buy, Geek Squad, online, recommendation engine, services, showrooming

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