- Unauthorized discounting and flash sales diminish the power of brands significantly
Unauthorized discounting and flash sales are two popular trends prevailing in manufacturing and retail industry respectively. Let us explore each one in detail and find out how extraction of information through Data-as-a-service model can act as a solution to the issue.
- Unauthorized discounting
- As manufacturers expand their business, they develop trade relationships with multiple product distributors. They promote their products through different sales channels for greater reach. They hold agreements with these resellers in order to protect minimum advertised price (MAP).
- However, more than often one-off resellers cut into the competition through MAP violations (it is not uncommon to find a product with a minimum advertised price of $50 being sold at $30 or even lesser by another seller).
- Violation of MAP agreement must be deduced immediately and corrective actions must be taken to maintain brand identity and value.
- Web data collection tools scan through different sources to deduct such violations for the manufacturer.
- Upon receiving relevant information, violation of MAP must be ceased to protect seller margins and promote fair competition among all distribution channels.
- Flash Sales
- Almost every online retailer practices an annual custom of organizing flash sales thus offering incredible price cuts for all product categories.
- Keeping track of these low prices and unauthorized discounts provided by competitors is mandatory for retail players in the online market as well as in the conventional space.
- Web data extraction allows you to track seasonal price changes and short-term price changes in order to ensure that your brand is priced appropriately.
- When such price cuts are left uncared, your brand loses its exclusiveness and importance and your marketing strategy goes hay wire.
- Importance of data extraction services in brand management
- Web data extraction services allow businesses to monitor highly sensitive areas like social networks, customer forums and capture vital information about price perceptions of the brand.
- Businesses can refine their branding operations based on information obtained through the service.
- Apart from pricing information, every mention of the brand in recorded by data-as-a-service provider and it allows the business to take corrective action wherever necessary.
- Prices can be altered in a dynamic manner and exclusivity of the brand can be retained.