Engage3 will allow Heinen’s to achieve the most comprehensive competitive pricing visibility, while leveraging its ML-powered product linking capabilities to attain a contextualized view of their competitors’ equivalent items at the localized market level.
Thad Reuter of Progressive Grocer, in a recent article titled Getting Pricing Right in 2021, writes that price optimization will be undergoing significant changes in 2021 – and that retailers who don’t get on board will face problems sooner than later.
“Price optimization will need to shift to be able to deal with smaller trip sizes, households with less money to spend on each trip, shifts to private label, and smaller pack sizes,” Edris Bemanian, Engage3 CEO, predicts. “Historical price optimization models of increasing price to drive profit won’t work. Retailers will need to focus on the items that drive their Price Image to keep traffic up.”
Struggling to compete on price and failing to drive trips
profitably?
Legacy price optimization solutions still use outdated elasticity models and rules to set prices, which don’t include shopper behavior and the impact of price on perceptions.
Using AI-based shopper behavior analysis, Engage3 developed Price Image Management, which accurately forecasts the volume impact of price changes and identifies which items will have the greatest impact on Price Image with the least investment.
Private Label (PL) is expected to outpace branded items by an incremental $216B by 2027. Most competitive intelligence programs don’t accurately match a retailer’s exclusive items, like PL, to their rest of market equivalents at scale. Read on to discover how to create a best practice competitive intelligence program that provides visibility to Private Label.
While it is important to be competitively priced on KVIs, the low margins and frequent price wars or competitive-price-comping make it incredibly difficult to differentiate on these items to improve a retailer’s price perception. By focusing price investments on identifiable Price Image Drivers, retailers can grow trips and increase loyalty while remaining competitive on KVIs.
Winsight Grocery covers the news about how Allegiance Retail Services Inc., the marketing and merchandising cooperative for New York-area supermarkets such as Foodtown, D’Agostino, Gristedes, Big Deal, La Bella, Brooklyn Harvest and Pathmark, has partnered with Engage3 to optimize its competitive price positioning.
When building an optimal Competitive Intelligence program, one of the most important decisions you will make is which competitors to include and their store locations to shop.
Leading Value-Based Lifestyle Fleet Farm Will Use Engage3’s ML-Powered Technology to Enable Comprehensive Pricing and Assortment Insights
Legacy competitive shop programs track only a handful of competitors, have limited items, and are rife with unmatched data. That’s because most data providers sell you “data by the pound.”
Price is the #1 driver of store traffic, but fewer than 5 items drive a consumer’s price perception. So how do retailers and brands know which ones?
We help retailers and manufacturers manage their Price Image through accurate competitive data, data science, and Artificial Intelligence-powered software solutions.
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