Analysis Ideas
Looking for ideas and hypotheses to explore with the data in Project Hammer?
Here are some ideas:
- When an equivalent product is available from a "premium" brand vs. "house brand", is one being discounted more often?
- Are there specific times of the year when grocers like to introduce new products? Seasons for killing products?
- Shrinkflation - can you see a drop in product size, while the price remains the same? Does the SKU / UPC change when a product's size gets shrunk?
- Pepsi and Walmart collude to price-fix in the USA. Can you see similar patterns across Pepsico's brands in Canada? (the pattern: Walmart is consistently the lowest price)
- Visualize the price of making a standard sandwich at each of the grocers (200g white bread + 20g ham + 20g lettuce...) Which grocer is cheapest? (the team at SAVR already did something similar!)
- Is there a Nov. 1 to Feb. 5 price freeze on certain products?:
Metro stated that “It is an industry practice to have a price freeze from Nov. 1 to Feb. 5 for all private label and national brand grocery products, and this will be the case in all Metro outlets.” - When a product goes on "sale", how long has it been since the previous sale? (if something is constantly on sale, then that's just its regular price - and is a violation of advertising laws)
- When something's on "sale", did the price get jacked up artificially just ahead of the sale only to lower it back down to normal?
- How are different grocers responding to each other's price moves, on a certain product/category?
- Is someone always leading price movements, and the others follow?
- Is one retailer always reacting, and never initiates price moves?
- Do prices for certain grocers move exactly in tandem?
- Do prices move completely at random, with no interaction?
- Do prices always rise, and never fall?
- Which grocer is generally the cheapest across all comparable product families?
- Do prices on certain "bundles of products" always move in tandem, at a single grocer? (think X, Y and Z always rising/dropping by similar amounts together)
Reminder: Canada has a system called "Supply Management" that controls the prices for dairy, broiler chickens, laying hens, turkeys and eggs. Expect that those product categories will move in a way that's inconsistent with normal market dynamics.