Successful Case Study in the wine & Spirits Industry: Competitor´s analysis and price optimisation

28/05/2013

Angela de la Vieja

The wine industry, very important in Spain, landed a few years ago in the online world and today, we can find a wide variety of references not only of national wines but also of international ones. This wide variety of companies has promoted competitiveness and now one can find different prices for the same product. In the following lines, we are going to show you the challenges we have faced in order to improve our client´s Competitiveness in the online world.

Success case study: Analysing competitors

Target: E-commerce.

Number of products: Up to 3000

Number of competitors: Up to 6

Plan: Professional.

Requirements: Obtain competitor´s prices, stock and Catalogue. Compare client´s products with Competitor´s, making an exact-exact matching relationship, bearing in mind vintages and being able to filter for those wines in which the client is more expensive or cheaper. Show graphics per category, where the client is Cheaper or more expensive.

Goal: Analyze top 6 wine distributor companies. The companies will be monitored on a daily basis. The client will receive alerts when its competitors carry out any changes either in stock or in prices.

Challenge

Like in other industries, the most difficult part of the project is the matching process, meaning stablishing a relationship between each client reference and the same reference in the competitors. In this case, we found an extra problem: two wines with the same name do not always match as its vintages may be different. To overcome this problem, Minderest team adjusted the attributor’s extractor of the system so it could also analyse vintages and make a precise match.

Solution

Once the competitor’s catalogues were analysed, the matching process which linked client and competitors’ products started. In order to make a right match other features such as denomination of origin, Colour (red, white, rose, etc) maturation and vintage were taken into account. As a result the following figures were obtained:

27.322 products monitored in competitors

2.828 client products were linked with competitor´s

8.416 Prices monitored daily

8.416 stocks monitored daily

732 competitor´s offers monitored daily

Achievements

Which of the 6 competitors are more important to the client, in terms of Catalogue affinity

Which competitors are in general and by categories cheaper or more expensive than the client.

Which products are offered by competitors and not by the client

Set up alerts which inform the client when competitors change prices on a certain % and break its Stock

Benefits

The client can now carry out a complete price revision on its catalogue saving time and money.

Using update reliable information, now the client can decrease those prices where he was too expensive in order to increase sales and also increase those prices where he was too cheap thus increasing profit.The client now knows which novelties are including his competitors

The client can carry out more successful promotional actions by knowing competitor´s prices

The client can order those products which are offered by his competitors that he didn´t have

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.