Industries : Music

Music industry - market competitiveness at it's best

More than 95 clients: Over the years, Price2Spy has gained a really strong foothold in the music industry (especially in the EU) - at this very moment we have nearly 100 clients coming from various segments of this tremendous and exciting industry.

This has given us a unique opportunity to work with high profile clients: some of them are large retail names (absolute leaders in their markets), while others are brands (or regional brand distributors) who use Price2Spy to keep an eye on the turbulent online market.

What we have learned is that the music industry is characterized by certain factors that aren't that common in other industries we've been dealing with

  • Price changes happen so often that in most cases capturing the product price once per day is simply not enough
  • Although brands and distributors are trying to enforce MAP rules on the market, retail sites are finding more and more innovative ways of avoiding MAP rules (one pretty common example is lowering the price on Friday PM, and going back up on Monday AM)
  • More and more sites (these are usually very young and aggresive, emerging market players) are trying to avoid being price-monitored by introducing smart IT solutions for detecting non-human traffic. Price2Spy is very proud of its Stealth IP technology, which enables us to bypass such obstacles.

Although most products from this industry do have standardized product identifiers (EAN / MPN) - very few retail sites actually do show these, making Automatch very hard to do (actually, in some cases our clients go for the hybrid semi-automated approach). On the other hand, manual product matching is always a possibility (and quite a few of our clients do it with our help, knowing that our product matching team has huge experience with products from music industry).

Large stores typically have different product managers taking care of different segments of their offer. In some cases, the work is split by product category (types of musical instruments), while in others it can be done by brand, or even by product supplier. No matter how your internal organization works, Price2Spy's flexible setup can address it - so each product manager takes care (and gets alerted) only of the products from his domain.

For those looking for in-depth analytical data, Price2Spy will give you all you need to easily identify your competitors' pricing policies (which probably differ from one brand to another, from one product category to another), and react to important price change alerts (for example, when a competitor lowers the price below a certain threshold). In case MAP-observance is needed, Price2Spy will indicate the MAP-pricing violations.

Last but not least - lets not forget the possibility of API integration. Many of our clients from this industry have implemented Price2Spy API interface within their own software, so they promote / demote potential Automatches (or watch price changes) directly from their own system, with no need to login to Price2Spy at all. We also have experience with clients who have fully automated their dynamic pricing solutions, so their software always gets fed with fresh pricing data from Price2Spy - enabling it to automatically adjust (usually lower) the price on their own website.

Best price monitoring practices

Here is how Price2Spy can help product managers from this industry:

  • The number of competitors / retail sites monitored very much depends on market strategy: some players tend to monitor only 2-3 big names, while others go very broad (40-60 sites monitored). Brands / distributors (due to the nature of their business) need to monitor much more websites - in cases of large EU-wide distributors, this can go over 250 sites monitored;
  • Number of individual products (SKUs) monitored varies from a few dozens (in case of smaller brands) - all the way up to 50 000 (matched by the hybrid Automatch process);
  • In case of a large number of products - API integration is usually a must (Typically, the client's software initiates the process by inserting new products into Price2Spy. Price2Spy then performs Automatch, and feeds fresh pricing data back to the client's software);
  • Price monitoring frequency is usually 2-8 times per day (Premium Price2Spy account offers up to 8 times per day). Of course, such high frequencies are not mandatory, but are hihly recommended due to the very fast-changing pricing on certain sites
  • The amount of Stealth IP traffic (needed for sites that try to avoid being monitored) can be determined based on the number of products / price check frequency 
  • Use Pricing Strategy module to identify products with price increase / drop opportunities - it will result in a clear and interactive list of products and suggested pricing changes;
  • Many of our clients have configured their own specialized widgets in Pricing Dashboard - which help them spot pricing / stock changes in the last few days; same goes for the share of cheapest products per site. In most cases these reports are segmented by categories / brands / suppliers;
  • MAP (minimal advertised price) violation module is heavily used in order to spot competitors who are playing against the rules, and to document such occurrences. Actually, some of our key clients (high-profile music brands) have configured Price2Spy to warn them only when MAP violations occur.