Right Test
Generates Merchandise Test Plan

Right Test identifies which stores within a chain are best to be used for a new product test, and calculates how the results of the test can be applied to scale up a forecast of season demand across the entire chain.

In addition, when preparing to introduce new products retailers need, in some cases, to determine the quantity for their initial order. It is critical to optimize the cost of stock outs balanced against the risk of obsolescence.

Yet, with no sales history, attempting to apply traditional forecasting methods to new products can prove to be extremely difficult. As a result, many retailers conduct tests in which products are offered for sale under carefully controlled conditions in a small number of stores. The success and validity of these tests are dependant on correctly answering two crucial questions:

• Which stores should be used?
• How can test results be used to accurately create a chain-wide forecast?

It is these questions that Right Test answers, allowing retailers to effectively test new products and ultimately order the appropriate quantities of product in their initial buy, optimizing sales for the season, while minimizing the exposure to over-stocking and closeout expense. By analyzing the performance and behavior of similar products across a retail chain, Right Test identifies the ideal stores in which to perform a product test.

Finally, Right Test generates a baseline forecast for the new products in the test stores, which is used at the conclusion of the test, to compare against the actual test results to generate a forecast of the product's performance across the entire chain for the season.