Our cases
Examples of successful solutions to business problems with Price Control services
- August 9, 2023
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Содержание
- 1 Our cases
- 1.0.1 Case #1. Monitoring the prices of customers and partners on the Internet is the way to increase brand trust
- 1.0.2 Case #2. Bringing order to prices in online stores as a way to attract new customers
- 1.0.3 Case #3. Attracting new importers as a result of an effective fight against dumping
- 1.0.4 Case #4. Dumping prices on the Internet - a real risk of outflow of customers
- 1.0.5 Сase#5. Loyal installers of your products - an inexhaustible potential for sales growth
Case #1. Monitoring the prices of customers and partners on the Internet is the way to increase brand trust
The client is a representative office of a well-known European company. More than 10 years of experience in the CIS. Sales are carried out by regional dealers. More than 400 online shops in Ukraine are purchased from dealers and sold by the company’s products. The installer is the No. 1 priority for the company. Trained and certified. He recommends to the customer what equipment and how to install it correctly, calculates the estimate for the entire installation project.
PROBLEM
Monitoring showed more than 70% of violators for each trademark.
Problem #1
- The installer, focusing on the MAP/ MSRP for equipment, includes it at these prices in the project.
- The customer looks at the price of equipment on the Internet, finds an online shop with a dumping price, accuses the installer of unprofessionalism, “kickbacks”, casts doubt on the entire project estimate.
Problem #2
- Dealers do not fulfill their sales plans, throwing responsibility on colleagues who sell to online stores that have dumping prices.
Problem #3
- The company's management daily has to solve problems with dishonest dealers.
SOLUTION
A set of measures to solve the problem.
1. As a result of the search for the presence of the brand on the Internet, all online stores working with the company’s trademark were found.. Newcomers in the brand are constantly added to the list.
2. Monitoring of prices in marketplaces and online stores has been launched, the overall picture of the market has been determined.
3. A policy has been developed for working with online stores that have dumping and with dealers who ship goods to them.
- An online store in dumping falls into a “separate list”.
- A dealer who sells to an online store who is on a 'separate list' is penalized with a percentage reduction or cancellation of the quarterly bonus.
4. The issue of terminating cooperation with dealers who have repeatedly violated the “rules of the game” is being considered.
RESULT
Results achieved.
- At the beginning of the project, out of 4,000 prices collected daily from online store sites, more than 1,500 were dumped.
- A year after the start of monitoring, less than 700 prices were dumped. Dumping falled by 2 times.
- At the beginning of the project on the hotline.ua resource, out of 60-70 offers for each item of goods, more than 10 were with dumping.
- A year after the start of monitoring, there are 0 violations for a number of positions (top) and 2-3 for less popular.
- Dumping falled by an average of 7 times.
- For a year of work, a list of online stores has been compiled that regularly violates the sales policy. Legal work is planned with them.
- The goal for next year is to reduce violations by 3 times. The goal is achievable.
Case #2. Bringing order to prices in online stores as a way to attract new customers
The client is one of the largest cabinet furniture manufacturers in Europe. There are own factories in a number of Eastern European countries. They are engaged in the sale of products, both independently and through a network of regional dealers. Very widely represented in specialized furniture stores and chain supermarkets. More than 200 online stores constantly work with products of the company’s trademarks. Online stores are dumping. The control purchase showed that most online stores sell goods imported into the country without paying taxes and duties.
PROBLEM
Prices of online stores do not comply with the MAP/ MSRP.
Problem #1
- Offline chain stores and specialized furniture markets began to reduce the space occupied by the customer's products.
- The buyer examines the furniture in these stores, receives advice, makes his choice.
- Then he looks at the price of the selected goods on the Internet, finds an online store with a dumping price, and makes an order.
Problem #2
- Dealers refuse to work with the customer's products, replacing them with other brands, which causes constant mutual complaints from customers about dumping, the need to reduce prices themselves.
SOLUTION
A set of measures to solve the problem.
- A policy has been developed for working with online stores and dealers, which provides for the availability of levers of influence on offending stores.
- Additional agreements have been signed with all dealers and online stores working with the company.
- An employee responsible for compliance with company policy has been allocated.
- All online stores that work with the company's products were found, priority ones for monitoring were highlighted.
- Launched price monitoring in the first 50 online stores. As they put things in order, new stores are connected.
- In online stores with dumping, test purchases were made to determine the channels for the receipt of goods.
- The issue of termination of cooperation with dealers and online stores that violate the "rules of the game" is being considered.
RESULT
Results achieved.
- At the beginning of the project, in December 2016, virtually every online store had dumping.
- Six months after the start of monitoring, less than 5% of online stores violated the manufacturer's sales policy. Dumping drop tenfold.
- The reduction of retail space of furniture and chain stores occupied by the customer's products has stopped.
- An influx of new customers began from among dealers, online stores and retail furniture stores.
- By the end of 2020, the number of online stores working with the customer has almost doubled
- At the beginning of 2022, the project continues in a supportive mode. The level of dumping continues to decrease, and the number of new sellers to increase.
Case #3. Attracting new importers as a result of an effective fight against dumping
The client is one of the largest European manufacturers of water heating equipment. They are engaged in the marketing of products through a network of importers. They are well represented in offline stores selling home and garden equipment. More than 600 online stores sell the company’s branded products. A few years before cooperation with the Price Control project, the company was monitoring its products on the Internet through one of the price monitoring services for online stores.
PROBLEM
Dumping on the internet.
Problem #1
- Online stores are constantly dumping.
- In retail stores and markets, interest of the customers to brand is declining.
- Retail prices on a number of Internet sites reach the level of prices for the delivery of goods to the importer.
- Among the sellers, the opinion has strengthened that it is impossible to make money on this trademark, and the company has withdrawn from solving this problem.
Problem #2
- Importers have focused on working with a number of wholesalers in the capital who transfer goods to online stores with an extra charge of $1-2.
- Wholesalers have become insolent and demand a constant reduction in the purchase price from importers, blackmailing them with a change in supplier.
SOLUTION
A set of measures to solve the problem.
1. New rules of work for importers have been introduced. They provide for high fines for trading with dumpers and provide an opportunity to protect intellectual property rights on the Internet.
2. A meeting was held with importers and an agreement was reached on the assistance of their managers in the work of Price Controls with violators.
3. Monitoring of prices of all online stores selling products of the client’s brand has begun.
4. Automatic mailing of letters to all online stores with dumping is enabled.
5. Automatic calling by the robot of all Internet sites with dumping is enabled.
6. The Price Control manager assigned to the project personally contacted the responsible persons of the sites that violated the trading rules.
7. The control purchase service was ordered in stores that refused to name suppliers. Importers who shipped goods to them were punished with fines.
8. In order to protect the brand on the Internet, a search is regularly conducted for the representation of the customer’s product on the Internet and all new online stores selling the customer’s TM are added to price monitoring.
RESULT
Results achieved.
- At the beginning of the project, according to price monitoring data in October 2018, more than 70% of online stores were with dumping.
- As of the beginning of October 2019, less than 15% of online stores are dumped.
- The number of online stores selling the customer's brand doubled in 2020.
- The manufacturer acquired the image of a supplier who cares about the earnings and stable work of his business partners.
- The project is ongoing. Regular monitoring of prices for goods of competing brands has begun.
- There is a constant search for the representation of the customer's brand on the Internet.
- The monitoring of the number of online stores that are checked for compliance with the rules of trade is constantly increasing.
- The task is to reduce dumping in the Internet channel to 3-5%.
Case #4. Dumping prices on the Internet - a real risk of outflow of customers
The client is a manufacturer of several brands of climate, water heating and heating equipment. It sells through its own online platforms and dealers who sell goods through online stores and marketplaces. At the initial stage of cooperation, the customer provided us with about 300 sites selling their goods for monitoring.
PROBLEM
Monitoring showed more than 70% of violators for each trademark.
Problem #1
- After sending notifications of violations and telephone conversations with representatives of online stores, we received feedback: “We are dumping because our colleagues do not keep prices on the market.”
- In the conversation and letters, online stores were mentioned that were not included in the monitoring.
Problem #2
- Attempts to restore order led to the fact that the goods began to go to uncontrolled territory.
SOLUTION
Coverage of the entire market.
1. After analyzing the prices in the market, we came to the conclusion that without control of the entire market, it would be difficult to restore order and solve the business problems of customers in full.
2. We decided to do a monthly search for the representation of customer brands on the Internet and add all found online stores to the monitoring for regular monitoring.
RESULT
Results achieved.
- During the period of work on these projects, more than 500 new online stores for each brand were found, and this figure is constantly growing.
- The possibility of "transferring" goods to uncontrolled sellers has been limited.
- There are no attempts to create clones of online shops and dumping.
- Fair competition, the introduction of an assortment by those online stores who abandoned the products yesterday due to dumping and the futility of sales ...
- Real dumping in the entire market decreased to 7-10% ...
Сase#5. Loyal installers of your products - an inexhaustible potential for sales growth
The client is a European manufacturer of heating equipment with more than ten years of experience in the CIS countries. In Ukraine there is a representative office of the company, and regional dealers are engaged in sales. One of the priority activities of the company is the involvement of installers. They carry out not only service maintenance of equipment, but are also the main customers. The need to purchase a boiler from an ordinary person may appear once or twice in a lifetime, and installers weekly give recommendations to their customers on what is best to buy.
The company offers attractive conditions for cooperation: installers undergo training, receive certificates, and a special bonus system has been developed for them.
GOAL
Expansion of the partner service network.
The tasks before us were:
- Gather a complete database of specialists in the installation of heating equipment in Ukraine.
- To find out if and how often they install equipment manufactured by our client.
- Get feedback on the manufacturer's products
- Engage specialist installers and companies involved in the installation of heating equipment to cooperate with our client.
SOLUTION
Collecting a database of installers.
Our company received an order for such a service for the first time, so we definitely could not calculate the timing of its implementation and labor costs. We received information from the client that the complete database could be about 7000 contacts. Focusing on this figure, it was planned to solve the tasks set in three months.
What we did:
1. We launched the parsing of websites of companies providing heating equipment installation services, bulletin boards, social networks, online stores. The total number of contacts found reached up to 8000.
2. The information was output to a report in XLXS format for further processing.
3. We connected call-center operators to clarify information by phone and interview installation specialists.
4. After all calling, the database was filtered and only relevant data was left. Only companies and specialists working at that time in this field remained on the list.
5. The database filtered from the “garbage” with comments on each contact was transferred to the client.
RESULT
Satisfied customer
- The project was fully completed in three months.
- The company received a complete up-to-date database of installers throughout Ukraine.
- Regional managers have established contacts with service companies and specialists.
- The client expanded the partner service network in the regions using the bonus system of cooperation.
- Sales of heating equipment were increase.
- Cooperation with the company has become an indicator of success for service centers and installers.
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