Successful Case Study with Pets: Competitor´s analysis and Price optimization

20/05/2013

Angela de la Vieja

Pet food is one of the industries which have experienced a bigger growth in the online commerce in Spain. We present a new success case study, in a relatively complex industry in terms of pricing due to the variety of formats in which products are presented, ranging from simple format packs to others which include price per Kg.

Competitor´s analysis Success Case Study

Sector: Pets food
Target: E-commerce.
Client´s number of products: up to 4000.
Number of competitors: up to 5.
Plan: Professional.

Client Requirements: Obtaining information about competitor´s prices and stock. Compare client´s products with competitor´s products on an exact-exact matching basis, enabling the client to carry out filters to find out in which products the client is cheaper and/ or more expensive. Include graphics per product category showing in which categories the client is cheaper or more expensive.

Goal: Analyse the top 5 companies in the industry and monitor its prices daily. Notify the client each price or stock change in any of these 5 competitors.

Challenge

As stated before, the pet food industry features for the variety of formats in which one product is presented. Let´s think about dog food for instance. The same product can be found in 2, 4, 8 and 2x8kg packs. In addition to that, some competitors show price per Kg. instead of price per pack. All these features require an adaptation of the algorithm so the Minderest System is able to establish effective price comparison relationships between client and competitors products.

Solution

By processing the competitor´s catalogues, the systems obtains the information required to determine each product main attributes, such as: brand, family (Dog, cat, etc.) model (pet´s age) and weigh. This information will be used in the matching procedure, in which we get the following results:

37.203 products have been monitored in the competitors
1.901client products have been found in the competitors
5.322 prices monitored daily
5.322 Stocks monitored daily
889 Competitor´s offers monitored
Define the importance of each of the 5 competitors in terms of Catalogue and product range
Define how are client prices in relation with competitor´s not only in general terms but also by category
Define % of stock on each competitor
Define which products are offered by competitors and not by the client
Set alerts which notify the client when competitors’ prices and stocks change.

Benefits

Enable the client to carry out a complete price revision of its Catalogue very quickly.

Reliable and update information which allow the client to take price strategy decision such us increasing the price of those products which are too expensive thus increasing sales, and decreasing those who were too cheap increasing the profit.

More effective Marketing and promotion actions by having an according to competitors price strategy

The client is able to know which products are offered by competitors that aren´t offered by him, so can decide whether to order them to the supplier

Having the option of price segmentation following the sales per Kg. format

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.