Data Blog by Lizeo
Identify the real competing products from its catalog
In the Pricing and Product Marketing teams of tyre industry, comparing equivalent competing tyre lines is a strategic activity in order to correctly position the products and associated prices on the market. This comparison made by a marketing segmentation outcome of the “season” and “vehicle” is a common approach and often performed manually.
Besides being easily deployable on a large scale because of the significant effort required to update this matrix of competitors, this method is not sufficiently precise and can lead to erroneous analysis with consequent price positioning.
Your challenges:
- Decrypt the positioning of competing products on the market
- Identify comparable competing products to set catalog prices
- Argue about the competitive advantage of your products compared to real competing products
Lizeo® Tyre comparability Algorithm
Based on the depth and accuracy of its price database and product catalog Lizeo®️ has developed an algorithm which identifies automatically the equivalent competitor products and tyres for each product and tyre on the market, in a systematic way and based on objective criteria.
How does it work?
Step 1: The algorithm first establishes a hierarchy of comparable tyres for each available tyre on the market and produces a comparability matrix for each of them. It uses the following criteria to rank comparable products:
- The age of the products (based on the 1st price date collected on the web by Lizeo®️)
- The dimensional mix of products (based on the catalog Lizeo®.product catalog)
- The online distribution of products (based on the number of prices per model collected by Lizeo®️)
- The popularity of sizes (based on information collected by Lizeo®️)
- The technical index of sizes (size metadata calculated by Lizeo®️ on the basis of the 5 technical elements to evaluate if a size corresponds to a rather economical tyre, high performance, sporty or super sports)
Step 2: The algorithm executes afterwards a list of queries to select the comparable tyres (product + sizes + markings) by identifying the closest attributes (sizes and markings) between the referenced products A and the comparable product B.
Data delivery: The algorithm is delivered stand-alone in csv file for one-shot competitor products and tyres identification, embedded in Lizeo business apps or in internal apps thanks to the dedicated API.
Your benefits:
- Automatic and factual identification of competing products (based on data)
- Save time up to 3 weeks
- Follow-up end of the niche market segments
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