What’s Your Retail Halo Plan? Video Transcription
What’s your halo plan? We know that in the current environment retailers are really challenged by supply chain, forecasting, assortment planning, and the growth of ecommerce. You know, whatever plans or strategies you’re executing, you should consider the halo implications, right?
What is the Halo?
What is the halo? That includes the product solution being purchased by customers. Customers don’t buy items, they buy solutions. So, for example, if you buy soda, a customer will buy chips. Or if you’re painting, you buy paint. You’ll buy paint brushes, rollers, etcetera. There’s also the negative effects, like cannibalization. Because you bought one meal solution or product solution, you didn’t buy another one. That’s cannibalization. And there’s pull forward, or stock up, or pantry loading. Because it was — you had product availability or it was a great promotion, that customer bought more and stocked up.
What Can Halo Planning Do For You?
Halo planning is an important thing to consider. In supply chain forecasting, it can help you minimize stock outs. In assortment planning, it will make sure that you have the products that the customers want to buy as part of solutions in your assortment. And in ecommerce, it makes sure that you put the right products on your ecommerce site that drive an increased halo effect in your stores.
Halo Planning and AI
Most retailers don’t build halo plans today because it’s beyond human ability, and that’s where the AI comes in. That’s what AI can do. It can help you build the halo plan no matter what your strategy, or focus, or initiatives are. So again, I ask you, what’s your halo plan?