What You’ll Find in this Case Study:
- Highlights of the Case Study
- Game-Changing Solutions for the Oil and Gas Retailing Business
- Oil Pricing Analytics Challenges of the Retail Client
- Oil Pricing Analytics Solutions for Industry
- Impact Analysis of Quantzig’s Pricing Analytics Solutions
- Key Outcomes
- A Broad Perspective on the Role of Price Analytics in the Oil and Gas Sector
- Key Takeaways of Pricing Analytic Solutions in Oil and Gas Industry:
Highlights of the Case Study:
|Client||A leading Saudi Arabian retailer in the oil and gas industry approached Quantzig for price optimization, competitive benchmarking, and real-time monitoring of price gaps to stay ahead of the competition.|
|Business Challenge||The client wanted to leverage Quantzig’s custom pricing analytics tools that could assess discounting methods and implement optimum pricing structure across channels.|
|Impact||Quantzig’s solutions helped our client increase sales and profit margins providing a helpful decision-making tool for real-time pricing and discounting.|
Game-Changing Solutions for the Oil and Gas Retailing Business
Despite a decline in fuel use, customers continue to consider the cost of fuel when choosing which retailer to visit. Therefore, fuel retailers must remain vigilant about their competitors’ prices and promotional policies. Considering the price while bidding for customer attention is more critical than ever.
Quantzig can assist retailers in analyzing rival pricing and discount strategies to determine the best prices. Effective discounting methods directly impact profits, business expansion, and customer loyalty. The technologies also allow price adjustments in response to anticipated client demands without affecting organizational profitability.
Oil Pricing Analytics Challenges of the Retail Client
A leading Saudi Arabian oil and gas retailer approached Quantzig because it was facing intense competition from competitors offering products at significantly reduced prices. Our client needed pricing optimization, competitive benchmarking, and real-time monitoring of price gaps for each of its product groups and consumer segments. The client wanted to leverage Quantzig’s custom pricing analytics tools to assess discounting methods and implement correct pricing structures across channels. Some of the critical issues that were negatively impacting the client were as follows:
- Variations in consumption behavior
- Fluctuations in the prices of oil and gasoline
- Rising costs of retail dealers and distribution
- Refining revenues and expenses
- Lower costs and incentives offered by competitors
Oil Pricing Analytics Solutions for Industry
With AI, Quantzig could extract patterns and trends in consumer behavior and provide the client with a pricing analytics solution for calculating oil prices. Quantzig also used a data-driven strategy to estimate demand, flow, and price to maximize profit. Besides that, AI helped with risk management to help control volatility and uncertainty inherent in the oil and gas industry.
To create highly effective regional pricing and discount strategies, Quantzig also implemented a data-driven methodology for price optimization that uses predictive analytics and AI-based approaches. Our experts also looked at the client’s existing price structure and coupled it with marketing and sales data to construct an algorithm that anticipated customer behavior. Implementing a real-time discount dashboard created by Quantzig enabled managers or sales agents to respond to increases in sales volume. The client conducted a univariate analysis to understand the individual impact of discounts, price, and other variables on sales. It also devised a simulator to dynamically design discounting and pricing strategies for individual products and customer segments.
Impact Analysis of Quantzig’s Pricing Analytics Solutions
The ability of Quantzig’s pricing analytics solution to increase sales and profit margins has been steadily recognized by our clients as it helps to identify the best discount strategies while considering all production-line costs. Advanced analytics, which combines engineering, data science, and computing capacity, helped the client achieve its goals. Our solutions had the following impact on our client’s business:
- Optimized pricing and discount strategies
- Provided a useful decision-making tool to the client and the sales team for real-time pricing fixing and discounting
- Offered real-time visibility of price fluctuations
- Increased retail discount transparency by leveraging pricing analytics technology
The client approached Quantzig to leverage its expertise in pricing analytics solutions to improve its retail sales margins. The client’s top concern was analyzing the regulatory norms governing the market environment. To correctly price their products and boost the profitability of their retail products, our client also needed to understand the pricing methods of its competitors and apply appropriate pricing analytics models.
Quantzig was able to help the client achieve these goals with the implementation of a decision-making tool. This tool gave the client real-time insights that helped them determine optimized pricing and discount strategies.
A Broad Perspective on the Role of Price Analytics in the Oil and Gas Sector:
The energy sector is very volatile, with prices changing daily. Therefore, it is necessary to keep abreast with the latest geo-political developments which impact the industry. At the same time, keeping a close eye on the competitors and consumers is crucial. Keeping track of multiple variables is a tough challenge for stakeholders in the oil and gas sector, which the adoption of advanced analytics solutions can ease.
Quantzig’s pricing analytics solutions take into account all the multiple variables such as market trends, supply and demand, and competitor landscape to arrive at pricing and discount strategies that are likely to maximize profits for the client.
Key Takeaways of Pricing Analytic Solutions in Oil and Gas Industry:
Quantzig’s pricing analytics solutions enabled the following benefits for the oil and gas retail client:
- Implemented an automated system for real-time pricing fixing and discounting
- Optimized pricing and discount strategies for maximum profit
- Enabled the client to remain competitive and relevant by evaluating competitors
- Ensured adherence to regulatory norms
- Provided visibility on inventory to plan pricing and discount strategies
- Helped the client retain valuable customers