Collect up-to-date data. Regular and detailed data collection becomes

[aliviaangle]

The basis for effective calculation of the Price Index and analysis of the impact of competitors' pricing activity on your own sales; you will need information on prices, availability and promotions.

Organize the information. Place all the collected data in one table. Think over the structure of the document so that all the figures and indicators are easy to read and understand. Use your own sales data to understand how changes in competitors' prices affect your sales.
Use the Price Index calculation formula. If the table is formatted conveniently, you will just have to substitute the required values ​​into the formula and get the result.

Create a chart. Visualization helps you understand how competitors' prices and your own indicators change over time more quickly and clearly. Instead of looking for deviations in long rows of numbers, you immediately see them on the chart.
Analyze sales data. To understand how competitors' pricing policies affect your sales, compare the IC calculations with your own sales data. This will help determine how much influence competitors have in different product groups.

Find competitor activities that affect sales . Once you have analyzed the indexes at the competitor and group level, it is time to go deeper and identify the actions of specific competitors that directly affected your sales. This will help you understand what exactly caused the growth or decline in demand for certain products. You can track competitor activity at the brand, product category, or individual product level — for example:
launch of promotional activities, sales;
change in prices for KVI;
changing the pricing strategy in a specific category;
the emergence of new products or exclusive offers;
aggressive promotion of products on the website.
By identifying such events and comparing them with changes in your own sales figures, you can determine which specific moves your competitors are making have affected your business. This will allow you to not only quickly respond to their activities, but also build a more thoughtful pricing and marketing strategy.