Retailer "Good Choice" has completed piloting the pricing system

2023: PowerPrice Intelligent Pricing Implementation Pilot

On June 19, 2023, Napoleon IT announced that, together with the Good Choice retail network, it had successfully completed a pilot project to implement the PowerPrice intelligent pricing system using the Goal Profit platform.

"Good Choice" is a large franchise retail chain with more than 400 outlets as of June 2023, serving 150,000 customers a day. To effectively manage sales, companies need to respond quickly to a changing market to have competitive and consumer-friendly prices. To do this, retailers use pricing systems using machine learning technologies.

In the process of restructuring the previous pricing model, the Good Choice retailer was faced with the lack of a suitable software product on the market to increase pricing efficiency and minimize the human factor. The existing model for forecasting network indicators when changing pricing parameters was not accurate enough and did not allow for prompt adjustment of prices.

In the realities of uncertainty, it is important for businesses to work according to the most effective model, reducing costs and risks. Effective pricing is one of the most important tools for the retail network in the implementation of this strategy, "commented Natalya Piunova, Marketing Director of Good Choice.

It was necessary to find a specialized solution to automate and optimize the pricing process, since many operations were carried out manually through Excel the table and required a lot of time. To pilot the implemented system, "Good Choice" turned to Napoleon IT. The solution was to pilot an intelligent pricing system PowerPrice using the Goal Profit platform.

The following objectives and objectives of the pilot project were defined:

• Launch the automation of the pricing process to increase the profit of the retail network based on the optimization core of the system;
• During the testing stage, investigate the user characteristics of the product: convenience and ease of use, flexibility and speed of settings;
• Test the network performance forecasting system when changing pricing parameters;

At the first stage of the project, data was collected and analyzed, customer pricing specialists were interviewed, and requirements for price rules and strategies were formulated.

After the analytics stage, the team began setting up pricing rules, where it was necessary to do:

• Setting up regular data exchange (historical and current data on competitors' prices) and uploading them to the system;
• Setting up pricing rules using world best practices;
• Setting up the demand elasticity model;
• Training of system users.

The next stage, the retailer loaded prices into pilot outlets.

For 4 months of the pilot project implementation, the following results were achieved:

• The system 100% covered the retailer's pricing process in terms of functional requirements;
• Users are satisfied with the simplicity and ease of use of the system;
• Routine operations began to take much less time;
• Several iterations of optimization and loading of prices set by machine learning to the store were carried out; the system showed good results in a number of positions.

The main advantage of the solution is the ability to flexibly configure the business rules of the system. It was possible to configure the function of loading price lines, as well as dimension groups and classes, which allows you to more accurately generate prices for intersecting goods within groups and classes. The retailer estimated that as early as June 2023, the system allows you to free up time for employees of the pricing department. The project is at the stage of replication for the entire retail network.

Given the ever-changing market realities, pricing is becoming one of the most important processes in retail. It is very important to have a tool that can change as quickly as possible. But it is equally important that the tool is convenient and intuitive for users. We are pleased that our colleagues from the Good Choice retail chain praised our product, "said Konstantin Price, Chief Commercial Officer of Napoleon IT.