Case Study
Monitoring the
Combined use of our AI-based technologies and e-commerce platform
Our client from fashion retail industry operates online stores in several countries. Like most fashion brands with a global outlook, this client had to tackle the same problems but in different contexts. Different markets present the brand with major challenges such as adjusting prices and offers that reflect the local market conditions,offering the product assortment that would fit the tastes and lifestyles of local customers and setting up the marketing activations and promotions that would boost sales and maximise Return of Investment (ROI).
Clients can use Apiron Technologies’ e-commerce platform, Hermes, with Pythia. Pythia’s advanced technology enables:
• Scheduled monitoring of competitors’ prices per SKU
• Online cross-checking promotions and offerings
• Generating a list of best sellers and proposed SKUs for purchasing
• Linking discounts and sales to increase rating promotional effects
• Using retail trends to minimize risk
Extracting insights about key product features
The following example illustrates how the Research & Development department can improve an existing product or launch a new one based on customers’ reviews.
The analysis involved crawling quality ratings and running a sentiment analysis to improve existing products for the brand. Key product features were ranked and further analysis was conducted to isolate areas that require improvements. See the Negative Reviews analysis.
By comparing price tiers and feature ratings, insights about the competition and ideas regarding the design of new products were generated.
Competitor Price Tiering Example
The following example depicts how a brand’s marketing department can compare price tiering, be aware of their competition and implement new pricing strategies
The table presents the number of products (SKUs) per price tier for every major online retailer for the brand.
The majority of SKUs regarding watches lies in the medium price tier making room for either launching new higher tier
products or a liquidation campaign.
Based on the brand’s marketing strategy, the price policy could be adjusted to make the brand more competitive.
Alternatively, promos or complementary benefits could be introduced to help products become competitive even if they are on a higher price tier than their competition.
Third-party Competitor Price Tiering on Amazon Example
The following example illustrates how a brand’s marketing department can limit third-party competition, keep a tight control over the supply chain distribution network and protect brand equity. This table displays the brand’s number of products (SKUs) per price tier for each reseller on the Amazon marketplace.
Identifying the merchants that sell your products
Identify where merchants source their stock. By doing so you can prevent resellers from getting cheap versions of your product.
Limiting Promotions
It has been observed that there is a significant uptick in Amazon third-party sales following a promotional period. When a brand offers a steep discount, resellers can take this opportunity to buy in bulk at heavily reduced prices. This practice results in essentially flooding the market with cheap stock which in turn enables third-parties to undercut prices once the the promotion expires.
Catching counterfeit merchandise
Obtain insights about cheap clones of your products so that you can report them.
Brand gating
In case you control the supply chain but you still lose the buy box due to prices, you can negotiate with Amazon or other marketplaces to set a barrier around your brand to stop third-parties from selling through your listings.This can be quite effective in discouraging resellers and counterfeiters from targeting your brand.