Published in: Pricing

How does pure player Oda pursue its aggressive pricing strategy?

Oda is a pure Norwegian player in food distribution, leader in its market. Created in 2013, the brand with an aggressive price image offers more than 8,000 references to its customers, both B2B and B2C.

Oda relies on cutting-edge logistics and distribution technologies to ensure its delivery services with the highest possible level of quality. In addition, to ensure that it remains competitive in its market, Oda has chosen to automate the optimization of its prices with PricingHUB.

The objective was simple: automate the management of data flows to benefit from them. Before the launch, it was therefore essential to ensure the quality and robustness of the latter, with particular attention to internal and competitive information.

“The Norwegian food retail market, especially in the low-cost segment, is incredibly dynamic, with prices changing several times a day in high season! With over 8,000 SKUs, we need tools that guarantee respecting our pricing policy in order to remain competitive and profitable. PricingHUB took up this challenge and was very agile in implementing personalized solutions for Oda, according to the needs in an environment whose complexity continues to increase ‘evolve.” Rafael Rossi Silveira – Pricing Manager at Oda

“Despite its relative youth, as a pure player, Oda has a great level of maturity and sophistication in their data management. The main challenge for PricingHUB was to integrate into this symphony, to optimize prices without disrupting the machine. We are very proud to have taken up the challenge and thank Oda for testing our limits while maintaining their trust” Olivier Innocent – Head of Customer Success Management at PricingHUB

To meet Oda’s need, we co-built and deployed custom features

• Chaining rules between products: to respect the consistency of the range
  • Respect of a price difference per liter depending on the packaging (e.g. €/l higher for a pack of Coke cans than for a 2l bottle)
  • Price difference between tastes (e.g. Fanta Orange 1€ more expensive than Fanta Lemon)
• Custom product attributes: to set up and activate multiple product segmentations according to life cycles, value, etc.
• Competitive alignment rules: by product category
  • Products are segmented based on customer-defined attributes (visibility, margin level, products where the price is printed on the packaging, etc.) and based on the distribution channel (catchment area) in order to receive a alignment with one/several specific competitors
• Localized management rules: taking into account, for example, the specificities for the “legal” management of returnable bottles

Today Oda’s price recommendations are automated on more than 90% of their catalog, which represents nearly 50,000 recommendations issued per day!

The implementation of very granular and fully automated price adjustment rules allows Oda to protect its margins, remain agile in the face of competition and save an FTE.

The large food distribution sector is today increasingly challenged by a growing need to base strategic decisions on data. Find out how Franprix has taken the lead and is automating its prices using data right here!

And have you ever considered using a pricing optimization solution to help you protect your margins and increase your profitability? To find out more, talk to one of our experts by following this link.