Recover 2% of Previously Lost Profit Margin by Following Competitors Smartly

Following wrong competitors with wrong products means margin dilution and price wars

To keep customers loyal, retailers follow competitors’ prices on their KVI products. Both competitors and product roles are mostly defined based on subjective opinions and limited data. As a result, a retailer gets a compromised margin for one group of products and subsidized prices for the other.

Data-driven price followership is the key

Price followership strategy remains effective as long as competitors and KVIs are properly identified. Data-driven evaluations of the real impact that competitors’ prices have on a particular product are made using statistical hypothesis tests, e.g. Granger causality test.

Competara uses the combination of machine learning and Big Data to upgrade and upscale time-proven statistical tests on the entire portfolio. Thus, the competitive landscape and assortment intersections are revealed accurately and timely.