Enabling data driven organization & dynamic pricing strategy
The fuel and gas sector is marked by intense competition and price volatility. Our customer, one of the largest players, has been facing challenges in optimizing our market position by manual pricing. However, the unique transparency mandated by regulations presented an opportunity. The potential for a dynamic, data-driven approach could turn these challenges into assets, promising to revolutionize our operations and the entire sector.
at a glance
Company Size
global company
Location
DACH region
Period
06/18 - 12/18
Industry
Oil & Gas
Main Services
Dynamic Pricing Strategy
Collaboration Project
Sometimes regulations are opening
opportunities for competitive advantage
01
Challenges
- Pricing Inefficiencies: Dynamic pricing can swiftly adapt to market fluctuations, ensuring optimal pricing
- Market Share Pressure: Real-time price adjustments can attract customers, improving market share
- Regulatory Compliance: Commercial analytics ensure accurate, timely regulatory reporting
- Profit Margin Optimization: Dynamic pricing maximizes profitability by adjusting prices based on market conditions
- Customer Retention: Competitive, adaptive prices enhance customer satisfaction and loyalty
02
Procedure
- Current Pricing Analysis: We first delve into understanding the existing pricing methodology, focusing on how analysts determine price differences
- Hypothesis Formulation: We then propose a hypothesis that data-driven pricing could enhance overall margin
- Data Collection & Model Creation: Next, we gather internal and external data to create a unique model for each fuel site
- Pilot & Learning: We select a pilot and benchmark group with similar criteria, test our model, learn from the outcomes, and refine the approach
- Integration & Implementation: Finally, we design a roadmap for automatic integration of the new methodology and implement these new ways of working
Results
- Increased Margin: Optimized pricing via dynamic strategies for enhanced profits
- Updated Pricing Strategy: A responsive, efficient pricing approach capturing market opportunities
- Integrated Data Model: A holistic pricing model incorporating diverse data sources
- Pilot Insights: Valuable learning and refinements from the pilot phase
- Integration Roadmap: A clear path for seamless integration of the new pricing methodology
Project Highlights
01
The hypothesis was proven that profit margin was increased
02
It was a revolution on the fuel market to establish dynamic pricing
03
The initiative became the key initiative on the CEO agenda