Today merchandising and promoting retail products on and offline is more difficult than ever. Leveraging artificial intelligence powered algorithms and machine learning tools, it is possible for marketers to gain an edge in product merchandising, organic and paid promotion. Whether you are in consumable products, packaged goods, healthcare, beauty, cosmetics, supplements, alcohol, cannabis or even fast fashion, Simplex's tools can help to drive advantage and increase sales.

1. IMPROVING RETAIL CPG
PERFORMANCE THROUGH AI

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What does the network of 4,000 SKU’s really look like?
Category blurring and fracturing. Products with little to
no differentiation, tightly crammed into overlapping
categories, sub-categories, spilling out across the long
tail of orphaned SKU’s.
Understanding this market reality is the first step to
controlling it.
2
TODAY’S MARKETPLACE IS COMPLICATED

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Today’s modeling and BI tools paint a false and
incomplete picture of reality. This gap in
insights is what causes brands to miss
performance goals.
Current marketing and merchandising
strategies focus only on SKU sales frequency.
Reporting mechanisms compare how individual
products sell against other items in the same
general category.
The BI tools of today provide a limited picture
of how products co-exist in the marketplace.
3
CURRENT PERFORMANCE ANALYSIS IS INCOMPLETE

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Customers become shoppers when they choose to be receptive to the ‘idea’ of buying and begin browsing.
Shoppers become buyers when they see what they want quickly and easily. Predicting these behavior transitions
and their catalysts leads to high value market baskets.
Customers can also be hunters. They skip browsing and go straight to buying. This behavior is connected to
destination or need based purchases.
Both consumer behaviors exist in the marketplace. To increase revenue, you must know how to merchandise for
the market basket, not sell a SKU.
4
CONVERTING SHOPPERS IS GROWING HARDER

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Simplex Intelligence focuses exclusively on CPG and retail categories that benefit from AI-driven intelligence. Our ‘applied
intelligence’ approach delivers results across 5 categories.
SKU Rationalization & Optimization Remove products that don't belong within the merchandising and inventory mix. Identify the
high value products by characteristics and attributes which are missing.
Merchandising Mix Optimization Identify maximum value items which belong in high value market baskets. Determine which
product mixes drive the highest incremental revenue and margin. Recommend improvements in how products are grouped and
displayed on and offline in order to drive larger, more profitable market baskets.
Pair-wise Product Recommendations Visualize which products are best bundled together and the timing necessary to increase
market basket value.
Promotion Investment Optimization Improve in-store and on-line ROAS (return on ad & promotion spend) by changing the
promotion investments. Improve non-monetary promotions through smarter assortment management.
Demand Planning Provide direction on market to store level optional inventory and purchasing decisions, per category and SKU in
order to meet current and near future demand and consumption patterns.
5
BETTER CONVERSION REQUIRES SMARTER TOOLS

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Using the Simplex approach, product performance shifts
from individual SKU performance to market basket
groupings.
Clusters and circles represent products that perform well
together. Products that separate from the clusters indicate
poor performing SKU’s.
Visibility of the network of market baskets allows for
improved merchandising, product recommendations,
promotional programs and demand planning.
Simplex Intelligence’s predictive SKU Optimization,
Merchandising Mix, Product Bundling and Pairing
Recommendation solutions remove decision friction and
fuel new revenue growth.
6
VISUALIZE SKU & MERCHANDISING PERFORMANCE

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Finding the promotional ‘investments’ which drive
sales lift versus drift requires seeing the landscape
differently.
To improve the results, it is important to understand
what products respond best to varying investments
and when an increased spend delivers a diminishing
return.
Some products and market baskets don’t react to
promotional investment at all while others stop
responding at certain levels.
Making significant improvements in ROAS requires
better analytics and intelligence tools. Simplex’s
Promotion Investment Management solution is a
smarter alternative than the current tools.
7
IMPROVING RETURN ON PROMOTION INVESTMENT

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With today’s growing SKU count, managing supply chain and inventory effectively is a growing problem. Unexpected safety
stock excess or out-of-stocks are today’s chronic reality. For many, this is due to a lack of accurate predictive sales and
consumption intelligence.
Simplex’s demand planning intelligence predicts consumption patterns in the near future. This intelligence can inform ERP
backbone systems, inventory tracking software or instead deliver the actionable intelligence directly to the professionals
who need it most.
8
PREDICTIVE DEMAND PLANNING

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With the complexity of today’s retail and CPG landscape, making proactive, predictive decisions using traditional
BI tools is virtually impossible.
Understanding how products actually exist and interact with one another allows for marketers, merchandisers
and inventory management professionals to move from reactive to proactive decision making.
Proactive decisions, using smarter tools leads to reduced friction, higher revenue and increased margin.
To win in today’s chaotic and challenging environment requires an evolved approach.
You have to know more to sell more.
9
SIMPLEX INTELLIGENCE IS YOUR ADVANTAGE

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