Stations managed by PriceCast Fuel have showed improved margins by approximately 1 eurocent per liter sold compared to the control stations.

1. Read how OK have
taken advantage of advanced
dynamic pricing
Read the case story
PRICECAST FUEL©
RETAIL FUEL PRICING – MANAGEMENT AND OPTIMIZATION

2. OK BENZIN – THE LEADING RETAIL
FUEL COMPANY IN DENMARK
OK Benzin is the largest Retail Fuel Company in Denmark with
1.300 employees and a yearly turnover of EUR 1,2 billion.
Their retail network comprises approximately 700 stations
accounting for a 25% share of the Danish retail fuel market.
The network is spread across all of Denmark – in the city
centers as well as in the countryside and on the islands –
and it consists of a mix of unmanned stations, unmanned
stations co-located with COOP supermarkets, and manned
stations with full-service convenience stores. Some are dealer
operated CODO and some are company operated COCO.
A VOLATILE AND COMPETITIVE MARKET
SITUATION
The Danish Retail Fuel market has for years consisted of
five brands accounting for 95% of the entire service station
network. Between 2007 and 2012 the market was charac-
terized by fierce competition and high volatility. At the peak
there were 10 to 20 price changes a day, and the spread
between the highest and the lowest price of the day could be
up to 15 eurocent.
PRICECAST FUEL
- reference story
OK Benzin running PriceCast Fuel on
700 stations across Denmark
During that time period OK Benzin spent a huge sum of
money defending their market share, and consequently the
management team started looking into the pricing process.
The objective was to improve the pricing analysis and deci-
sion process and optimize pricing according to their overall
strategy in order to lower the cost of price wars or better
yet, to avoid them.
TESTING AND EVALUATING
THE ALTERNATIVES
After having evaluated various conventional pricing solutions,
at the end of 2010 OK Benzin consulted a2i systems about
developing an industry-specific version of their PriceCast
system, tailor-made to the needs of an agile and leading
player in a dynamic retail Oil&Gas down-stream market.
During 2011 the industry specific ‘PriceCast Fuel’ was designed
and developed. OK Benzin’s historical transactional data as
well as all other data relevant to their sales were thoroughly
analyzed by the PriceCast Fuel AI engine. The results of these
data analysis were stunning and a Pilot live test should prove
their promises right. During the Pilot live tests it became
clear that by using PriceCast Fuel OK Benzin could improve
margin with 4-5% without compromising their market share.
The case was clear PriceCast Fuel where the right choice.
RUNNING PRICECAST FUEL ON
700 UNIQUE STATIONS
After the Pilot live test end of 2011, OK Benzin started a full
deployment of PriceCast Fuel to manage the pricing on all of
their 700 stations. As all their stations are working within each
their unique market situation, some stations are managed
with rule based pricing, others with AI optimized pricing and
yet others with a combination of the two – call it restricted
AI optimized pricing. With different strategies and locally
adjusted parameters all stations are managed to perfection
in each their local market and of course according to OK’s
overall corporate strategies, restrictions and objectives.
MOBILE MANAGEMENT AT HAND ON SITE!
When visiting the local station dealers OK’s District Managers
bring PriceCast Fuel with them on a tablet. This way they al-
ways have all the latest sales data, history and reports at hand
to show when they are on site discussing the local business
with the local dealers. When the deliberations and conclusions
lead to adjustments of parameters these changes can be
implemented on the spot and right away. This means faster
time to market and ease of business.