How Bajaj Electricals beat the Amazons and Flipkarts at their own game
E-tailing in India is seeing unprecedented competition from the largest online marketplaces to click and mortar stores. Price competition is fierce and discounts are massive and on special days it gets even bigger. In such a dynamic price competitive market Bajaj Electricals was finding it extremely difficult to sell online. It was either over or under priced as competitors changed prices every other day. The brief was to find a solution such that Bajaj Electricals could be competitive on Google Search via the product listing ads.
We created DynaPrice, a Dynamic pricing engine for Google Search. DynaPrice was built using the Google Adwords APIs. It checked the price of our SKU’s on the leading marketplaces periodically. As soon as the price changed on any website DynaPrice determined how to modify our price to remain competitive. The prices were changed on the website followed by the product listing ads in Google Search. In case it was not feasible to lower the price we removed the product from the listing completely to minimize wasted impressions.
DynaPrice had an immediate impact on the numbers as our CTR went up by over 300% while the cost per sale dropped by 52%. Monthly sales from the product listing ads went up by 40%. Finally, Bajaj Electricals was able to win the pricing battle on google search.