Learning PathModule

Case study - Zen Electron

Meet Zen Electron, a multi-brand electronics and appliances retailer, which will help you learn more about meeting a business’s pricing requirements.

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After completing this page, you should be able to:

  • Implement a pricing strategy that ensures uniform pricing for a Product Variant across multiple sales Channels and markets.

In our Price calculation module, we covered the pricing capability of Composable Commerce in detail. Before jumping into this module and learning how to work with this capability, let’s review some of the main concepts we covered.

Quick recap

Embedded Prices & Standalone Prices

Composable Commerce provides two types of internal pricing, Embedded Prices and Standalone Prices. For a comparison of their limits and storage characteristics, see the Pricing and discounts overview.

Price scoping

Detailed scoping helps in selecting the appropriate Price for the Cart, as detailed in our documentation under Line Item Price Selection.

Tiered Prices

Composable Commerce supports Tiered Prices. For their characteristics, see the Pricing and discounts overview.

Price selection process

On a high level, this is how the Price mode selection process works:

An overview graphic of the Price mode selection process.

External Prices

In some cases, Embedded Prices and Standalone Prices may not meet your requirements. To address these situations, Composable Commerce provides external pricing solutions that offer greater flexibility.

These concepts shall come in handy as we move through our use cases and explore how we can use Composable Commerce to solve them.

Welcome to Zen Electron

This module features a case study on Zen Electron, a leader in the Australian electronics and appliance market. Let's first examine Zen Electron's business structure and pricing needs, then explore how Composable Commerce can address those requirements.

Zen Electron operates extensively in Australia and New Zealand, serving its customers through two distinct brands: Electronics High Tech and Zenith Living. While each brand maintains its unique identity, the two brands share technological solutions and product catalogs, creating complex pricing challenges that require tailored strategies.

Brand profiles

Electronics High Tech

Known as "The Discount King," this brand dominates the electronics market with its competitive pricing and minimalistic shopping experience. Targeting a younger, tech-oriented demographic, it specializes in gadgets like TVs, computers, and mobile phones. The brand’s appeal lies in its ability to offer the best deals without focusing on an elaborate in-store experience.

Zenith Living

This brand is synonymous with "Service with a Smile" and offers a more upscale and personalized shopping journey. Zenith Living caters to a mature audience that values high-quality home appliances and appreciates detailed services like delivery and installation. The focus here is on enhancing the customer experience through thoughtful service and premium products.

Market and operational overview

Retail presence in Australia and New Zealand:

  • Electronics High Tech:
    • Australia: 200 stores across various states
    • New Zealand: 20 stores
  • Zenith Living:
    • Australia: 102 stores
    • New Zealand: None

This multi-brand, multi-region footprint creates a complex Project setup. It is typical of enterprise-scale companies and requires well-thought-out solutions for product catalog management and pricing.

Product catalog

In total, Zen Electron has a total of 46,000 products in its catalog, averaging three Product Variants per Product.

Pricing & marketing alignment

Zen Electron has the following pricing requirements that need to be incorporated in their Composable Commerce solution:

  • Zen Electron employs eight standardized price lists to ensure pricing consistency across all selling points. Each list has different Price points and can be sorted by Price grouping from lowest to highest.
  • Each physical retail store has the right to select their Price list and override Prices for specific products on an ad-hoc basis.
  • When there is a sale, the fixed sales Price must be applied across all sales channels and override any other Price, in a manner that requires no intervention by the store personnel.

This system plays a crucial role during sales events, requiring all locations to adhere strictly to set Prices, thus guaranteeing a uniform customer experience both online and offline.

Special pricing model

Electronics High Tech has a special Customer Group called "Staff & Friends" where they offer a substantial 30% discount off the original Price. This discount is exclusive and not combinable with other promotions.

As we progress through this module, we will explore how Zen Electron leverages Composable Commerce to implement these critical pricing strategies. We'll see firsthand how Composable Commerce's versatility aids in aligning pricing tactics with the company's broad market and operational objectives.

Let’s jump into how to solve our first pricing requirement after a quick knowledge check.

Test your knowledge