We believe that Market Conditions can bring you great added-value in setting up your strategy. Therefore, and in order to help you use this feature to its full potential, we came up with some scenarios that will hopefully inspire you to adopt them.
Let’s say that you are a Dutch online retailer in the electronics industry. You are well aware that the latest iPhone is one of your best selling products. However, the margin on this product is low. Let's walk you through how you can make better margins on this product.
You have identified two main competitors which are Artencraft and Mediamarkt. You want to follow the prices of both of these competitors, but both sometimes do not offer the product (e.g. out of stock). When none of them offer the iPhone you would like to price up a little bit to increase your margin slightly.
Let’s dive deeper into the actions needed to make this scenario happen, and most importantly how Market Conditions can help us achieve these goals.
First step: Define the action to be applied
As with all business rules in Omnia, you will have to set the action that will be applied in the strategy. In this case, the basic action will be to increase the price by 2% if all conditions are met.
Second step: Adding Market Conditions
The skeleton of your business rule will look something like this. So the rule applies only to the iPhone 12 products.
By clicking on ‘Add condition’, you will be able to select the template that will translate your idea the most. In this example, we will use one that will allow us to exclude the tier 1 competitors. In this sense, the action we set will apply only if none of our main competitors are selling the latest iPhone.
Third step: Finalizing your rule
After adding the Market Conditions layer, all that will be left is to add our initial action to the rule:
Keep in mind that, with all rules within Omnia, it is very important to set a safety rule. This is especially true for this scenario, as the rule might be apply exponentially as long as your main competitor is not in the market.
You are now setup to take opportunity of moments when your competitors are not selling the product. Not only will you gain a bit of extra margin on these products, you might even be able to pull the prices up to a new level if your competitors match your new price when the products are back on stock.