CONCEPTUALIZING A RETAIL SOLUTION ON COMPETITIVE PRICING

Saurabh JainGoa Institute Of

Management

SUMMER INTERNSHIP PROJECT

PURPOSE

To design a prototype for a solution in the retail domain that can act as a model for clients in pricing their own products to gain competitive advantage in the world of dynamic pricing.

Snapshots of Retail Industry:

• Fifth largest sector in the world, is one of the sunrise sectors with huge growth potential

• Expected to grow 17% globally with the emergence of the new economies and opening up of the markets

• In 2013 the grocery market in six Central European countries was worth nearly €150bn

• Growth in emerging markets like China, India, Brazil is expected around 20-25%

WHY COMPETITIVE PRICING?• Some of our key Secondary Research insights

*KPMG-Retail Outlook 2013

Pricing is a central concern to most of the problems

REPRESENTATION OF INFORMATION FLOW

Generates POS Transactional Information.

Data collection & Aggregation

INTELLO- PRICE

Client Store Competitor

Store

PRICING ANAYTICS

Sales Volume

Promotions &

Discounts

Price

Points of

Products

Sentiment Analysis of social media

Demographic

details of consumer

s

Aggregate Demand, Supply

GDP per

capita

Margins

MSRP

Price difference

Discounts offered

MAJOR OFFERINGS FROM COMPETITORS & BUSINESS BENEFITS

COMPETITORS

Product Based

Competitors

Oracle SAP

Direct Competito

rs

TCS

Competitive Pricing

Macro Space

Utilization

Infosys

Pricing Analytics

Cognizant

Pricing Optimizati

on

Procurement and Spend

Analytics

Other Competito

rs

Latent View

Analytics

Pricing and Mark

Down Optimizati

on

The Smart Cube

Pricing Analytics

Boomerang

Commerce

Competitive Price

Optimization

• Niche players like Boomerang Commerce have rolled out its solution for $ 1 Million

• Direct Competitors like TCS, Infosys have started rolling out solutions to its retail clients to capture the need in the market.

• Wipro can leverage upon its previous statistical models of Trade Promotion Optimization(TPO) and Market Mix Modeling(MMM) to develop this solution.

KEY LEARNINGS

Dynamics Of Retail Industry

Solution Design

Pricing Analytics

Key Features Design

Screen Visualizatio

n

Target End User

Scope & Assumptions

TPO Model

Marketing Mix Model

Pricing Manager

Competitor Offering

Data Representation

Key KPI’s

In House Product Development

Marketing Strategy