Rise Vilnius together with Pricer.Lt organized the "Food retail innovations" Conference 2017 to discuss topics on: · New food retail trends and experts’ insights; · Omnichannel retailing; · How to know and understand your customers and offer the right proposal? · New food retail technologies and concepts; · Transparent pricing: Challenges and Opportunities · Discussion panel – Food retail: the need for innovations, the speed of changes implementation and main obstacles, future development directions. Conference speakers: · Tomas Bazys, „Maxima LT“, Director of IT Maintenance Department · Donatas Jankauskas, HANSAB, Head of Financial solutions group · Povilas Kepalavičius, StrongPoint Baltics, Head of smart store solutions · Audrius Ramoska, RetailEYE, Founder and CEO · Odeta Isevičiūtė, Dealoyal, Co-Founder · Arūnas Vizickas, Pricer.lt, Founder and CEO

1. PRICE WARS: HOW DO OUR
CUSTOMERS CHANGE AND WHAT
NEW COMPETITIVE ENVIRONMENT
DO WE DEVELOP?
Arūnas Vizickas, founder and shareholder of Pricer.lt

3. 1. What is the real price war?
The company that has announced “war” by low prices, i.e. that makes the prices of goods and
services lower than those of competitors in order to force competitors to go bankrupt. In many
countries such “price war” is prohibited however it is very difficult to prove it. Economists say that
it is rarely applied in practice.
Companies that take such competitive measures must be financially strong to be able to operate
at a loss for a sufficiently long period of time. Thereby ousting competitors from the market they
must be sure that competitors will not come back to the market when the prices start growing. As
one of the ways to avoid this is to acquire premises or equipment or attract employees from weak
competitors.
Already well-established businesses often resolve to disrupt new competitors this way.
Finnacially strong companies, market newcomers also apply a similar mode but not necessarily
wishing to ruin market old-timers. Their goal is to conquer market share as soon as possible, later
the prices prices will gradually begin to increase.

4. War, war, war

5. 1. State against another State

6. 2. State against business

7. 3. Business against
business

8. 3. Business against business

9. 3. Business against business

10. 3. Business against business

11. Maxima/Lidl

12. 3. Business against business: seller
against supplier

13. 4. Business against state

14. 5. Buyer against seller

15. 6.Price war against oneself (one’s
prices)
■ Comparisons with the former prices
■ Comparisons with the recommended prices

16. In many cases it’s promotional price war

17. We are having old price wars, most
frequently promotional...
Have we assessed the changed situation
and new opportunities?

18. „There are many ways to center a business. You can be
competitor focused, you can be product focused, you
can be technology focused, you can be business model
focused, and there are more. But in my view, obsessive
customer focus is by far the most important...“
The most important thing is
to focus on the customer!

19. - „First money, then customers“? Money comes after customer and not vice versa.
- „Quality up, price down, decisions quicker“
Tele2 lessons: Customer is a king

20. 3. Why price?

23. 5 Euro

24. Prices are
compared
constantly!

25. New technologies

26. catalyst for change – digital revolution

27. New opportunities, new customers' shopping
habits– Connected Customer
The customer purchase journey: Traditional
Inspiration Service/Aftersales
Shop inspire servisebuy
BuyOrientation
orient
The customer purchase journey: New
Inspiration Service/Aftersales
Shop inspire servise
E-shop inspire research compare transact recive aftersales
e-shop.com
producer.com
compare.com
distributor.com
competitor.com
social netwok
shop
competitor
fair
TV
bilboards
magazines
portals
social netwok
Online shopping has increased the options
e-retailretailMedia
Buy
buy
Orientation
orient

28. New customer here
and now:
1. Compares prices
2. Analyzes information
3. Shares experience
4. Guided by the
recommendations of
friends
5. Looks for real
experience
Replaces traditional media by
social networks

29. 4 P is replaced by 4 E

30. New opportunity - transparent pricing

31. New opportunity - Intelligent dynamic
pricing

32. Intelligent dynamic pricing. Connected
Retail

34. New distribution system
Producer
Money, service/goods
return
manuals, products,
marketing,
monitoring
invoce, products, service
Retailer/Distributor Customers
Money, service/goods return
Traditional distribution system
Producer
Money, service/goods
return
invoce, training, products,
marketing support,
monitoring
Distributor
Money, service/goods
return
invoce, training, products,
marketing support,
monitoring
Retailer
Marketing
Customers
New opportunity – transformation of
distributing systems

35. Will new opportunities be used?