In the supermarket’s price-sensitive industry, determining the right price that will attract enough customers and allows them to stay competitive is a difficult task. However, data analytics empowers supermarkets and grocery stores to price their items right. Through examining real-time sales numbers and customer feedback, they are able to determine the right price that customers respond positively to, yet one which allows them to remain profitable.
One of the tactics of dynamic pricing is cross selling a discounted item (e.g., buns) with a complimentary product (hot dogs) at a full price. This strategy helps reduce food waste by lowering the prices of goods nearing their expiration date.
Benefits for the company
This is especially important for supermarkets, given the extremely tight profit margins in which they operate in.
Type of expertise/ AI domain
Internal data required
Historical Sales, Costs, purchase records, Stock levels
External data possible
Competitor Prices, Special Occasions