case study 1.1 in Decision support System .. Giant food stores

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Giant Food Stores Prices
CASE STUDAY 1.1
PAGE NUMBER : 14
SAlaM Thabet Doghmash
220132187

2. A bout Giant : 2
 Giant Food Stores, a regional u.s. supermarket
chain based in Carlisle, Pennsylvania.
 had a narrow Every Day Low Price strategy that it applied to most
of the products in its stores .

3. The old system for Giant Food stores :
The problem  :
 The company had a 30-year-old pricing and promotion system that was very labor
intensive and that could no longer keep up with the pricing decisions required in the
fastpaced grocery market.
 The system also limited the company's ability to execute more sophisticated pricing
strategies.
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4. Solution for problem that caused old system :
 Giant Foods worked with DemandTec to deploy a system for its pricing decisions .
 The system is able to :
- handle massive amounts of point-of-sale and competitive data to
model and forecast consumer demand .
- automate and streamline complex rule-based pricing schemes.
- handle large numbers of price changes .
 The system allows Giant Foods to codify pricing rules with "narural language"
sentences rather than having to go through a technician.
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5. Cont..
 The system also has forecasting capabilities ,These capabilities allow Giant
Foods to predict the impact of pricing changes and new promotions
before they hit the shelves.
 Giant Foods decided to implement the system for the entire store chain.
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6. The results :
 The system has allowed Giant Foods to become more agile in its pricing.
 It is now able to react to competitive pricing changes or vendor cost
changes on a weekly basis rather than when resources become available.
 Giant's productivity has doubled because it no longer has to Increase staff
for pricing changes.
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7. Giant now focuses on :
‘’maintaining profitability while satisfying its customer and
maintaining its price image."
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8. Any Question / Comment ??
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