Ocado Enlists Profitero As It Rolls Out 'Low Price Promise' Campaign
Published on Sep 28 2012 9:35 AM in Technology
UK online grocer Ocado has drafted in competitor price monitoring firm Profitero to provide it with the daily online pricing data of its rivals as it steps up the battle for sales following a slowdown in sales growth. The online supermarket disappointed supermarket analysts last week when it announced third-quarter sales had slowed to 9.9 per cent - down from 12 per cent in the first half of the year.
According to UK retail publication Retail Week, following a pilot of its 'Low Price Promise' campaign in Manchester, Ocado is now offering the campaign to customers of its Bristol and Oxford distribution spokes. Having Profitero's daily updated competitor pricing data will give Ocado the power to react quickly changes in prices at rival stores and online: lowering its prices when higher than the competitor and increasing prices to increase margins when much lower than competing supermarkets. As well as offering competitor price matching on the A-brands, Profitero is also the only service to offer automated private-label matching for the FMCG market.
"Ocado is a perfect example of where we can help grocers to better place themselves for growth in the future," said Vol Pigrukh, chief executive and co-founder of Profitero. “We were able to set up matching of products to the specific requirements of Ocado’s business.” Ocado received the first batch of Profitero’s competitor pricing data three days after signing the new contract. “Profitero’s pricing intelligence can help retailers to see where their prices are too high – losing out on sales – and where prices are too low – losing out on profit margins. This pricing data allows clients to benchmark their pricing against the competition more effectively," added Pigrukh. Thomas Thomaidis, head of grocery merchandising and insight at Ocado, says that such timely pricing data will mean better value for Ocado customers. "Accurate pricing information is vital for Ocado to find opportunities to improve our value and range offer to our customers," he said."Profitero have understood our mission to be different and have met all of our challenges in every step of the journey to achieve this." Profitero works with many international retailers in the FMCG and grocery vertical (Ocado, Tesco), consumer electronics and home electrical (Tesco Direct, Worten), DIY, beauty, office supplies and many other categories. For more information on Profitero, visit http://www.profitero.com. (28 Sept)
© 2012 - ESM: European Supermarket