What extent do we consider a product a ‘match’ against a competitor’s product? It is one of the hardest challenges to provide price comparison. The detail needed to be observed at a product variant level depends on competitor clients in different marketplaces, types of product offerings, and direct and indirect competitors. Product matching without considering a variant level match in some markets may be enough. However, in most cases, the detail needed to ‘match’ is much more complex.
Sellers should explore variants affecting market pricing, and tweak reports to achieve better insights.
Variants are the options (or choices) available while purchasing a product. It comprises generic attributes such as size, color, material, quantity/case pack or specific attributes such as Amp, Wattage, Voltage, Resistance for electrical tools, features or add-ons for software packages, ingredients for food products, etc. Sellers should explore variants affecting market pricing, and tweak reports to achieve better insights into competitor and market behavior.
Variants typically have a dynamic relationship with product prices, i.e. product prices can differ per variant – color, size, functionality, features, components, material, pattern, etc.
Here’s an example of a product price that varies with color –
When a Competitive Pricing Intelligence (CPI) is run for a product with two variants, it is essential to accumulate the enriched set of product attributes. Variant level matching is a major challenge for exact product matching. Depending on the product type and requirement, variants may have to be matched against a single or multiple attributes such as size, color, quantity, material, etc.
In the below example, the requirement is to match a black leather shoe. The competitor sells black leather and a suede shoe. Here, we do not need to consider the size or other attributes.
Competitor Variant Product
To ensure the right variant is matched for each SKU, GrowByData’s proprietary Competitive Pricing Intelligence (CPI) algorithm marks such cases for review. With a mix of Artificial Intelligence, Human Intelligence, and quality check process, we guarantee correct product variant matching.
Thus, we generate accurate SKU level competitive pricing analysis. This is why you need to do Competitive Price Intelligence correctly.