PriceCast-based systems deploy a novel application
of Artificial Intelligence (AI), developed by a2i systems.
The systems utilize learning algorithms to construct dynamic profiles of customers and their usage patterns, as well as competitors and their strategies on both micro and macro scales. Sophisticated methods for reasoning about uncertainty and coping with incomplete data make PriceCast-based systems mimic a flexible, almost human-like, behavior.
The methods allow these systems to rapidly and intelligently react to changing customer behavior, changing markets, and unexpected events. The automated and continuous observation of the complex interactions obscured in the data result in a system with superhuman expertise. That is the key to the superior performance of PriceCast-based systems compared to less adaptable systems based on conventional technologies.
PriceCast Fuel is a PriceCast-based system designed and engineered for the retail fuel market. It utilizes Artificial Intelligence (AI) to optimally reach the local and/or global target for any given station and product. By continuously monitoring data (such as transactions, competitors’ prices, time, location, traffic, weather, etc.) PriceCast Fuel learns about customers’ and competitors’ behaviors and optimizes the price for each product at each site, taking every significant correlation into account.
Being a PriceCast-based system, PriceCast Fuel is robust enough to handle unexpected events such as outages leading to incomplete or inconsistent data, or non-repeating local events in the market. The best part is, that all this is done automatically.
Case Story: OK Benzin
a2i systems has many good succes stories with leading retail fuel companies in Europe. This is the story about the first one, in our own backyard.
OK Benzin is the largest Retail Fuel Company in Denmark with approximately 25% market share and 700 fuel stations spread across Denmark.
Between 2007 and 2012 the Danish Retail Fuel market was characterized by fierce competition and extreme volatility with up to 25 daily price changes per product per station, and daily price fluctuations of up to 20 eurocent. Being the market leader, OK Benzin decided to do something about it and consulted a2i systems.
A preliminary analysis performed by a2i systems indicated that the PriceCast technology potentially could improve OK Benzin’s margin by 2-4%. Based on these findings PriceCast Fuel was developed and implemented in order to run a live pilot test and evaluate the concept.
Two groups of stations with similar sales numbers, market conditions and competitive situation where identified. One group was chosen as the test group and the other as the control group. After running the Pilot Live Test of PriceCast Fuel fully automated on the test group of 20 fuel stations and through-out the full test period, the case was clear.
The test stations performed significantly better than the control stations. The stations managed by PriceCast Fuel showed approximately 5%[nbsp]improved margins. On a yearly basis this means millions of Euros in additional margin.