GROUP MEMBERS

• ARVIND 22BCS14470
• ANSHUL RANA 22BCS11772
• HIMANSHU 22BCS13141
• PARTH KAUSHIK 22BCS14380
• NIKHIL KUMAR 22BCS12206

SUPERVISOR : Dr. Sarbjit Singh

INTRODUCTION
• Retail pricing plays a vital role in any business and can significantly improve
profitability. It involves setting of right prices to maximize the profit while being
competitive in market. As the technology is advancing day by day machine learning has
emerged as a powerful tool in this process. In this project we will explore the use of
machine learning techniques to optimize retail prices.
MACHINE LEARNING
• Machine learning provides an ability to machine to learn from its experience without
being explicitly programmed. It is a powerful tool for retail price optimization because it
can analyze large amounts of data to identify patterns and make predictions. In the retail
industry, there are many factors that are responsible for the price of a product, such as
demand, supply, past prices, competition and costs. If we try to analyze data manually it
will be time consuming and error prone.
PROBLEM STATEMENT

• In the today’s world the competition is increasing everyday so it has become very crucial
to set the right price for products, if any business want to be successful. Retailers need
to remain competitive with the need to maximize prices. Determining the right price might
be a challenging due to many factors. In this project we aim to address this problem by
developing a machine leaning based model to optimize the prices of products and to
create a robust and accurate model which leads to maximize profit.
METHODOLOGY
• DATA COLLECTION : We need to collect relevant data for our analysis. It may include
historical sales data, competitor prices, product costs and other relevant factors.
• DATA PRE-PROCESSING : After collecting data we need to pre-process data which may
include cleaning the data to remove errors or inconsistencies ,as well as transforming
the type of data so that machine learning algorithms can use that easily.
• MODEL SELECTION : We will select the appropriate machine learning algorithms for our
analysis. There are a number of algorithms that can be used but we need to check which
will be suited best our project
METHODOLOGY (CONTINUED)

• MODEL TRAINING : After selecting the model we will need to train it on our data. This involves
feeding the data into the algorithms and adjusting their parameters to increase accuracy.
• MODEL EVALUATION : The next step is to evaluate the performance to ensure that they are
making the right prediction. It may involve comparing predictions to their actual sales data to
see how well they are able to predict optimal prices.
• MODEL DEPLOYMENT : After testing and evaluating we need to deploy our model in a real world
to help retailers make informed pricing decisions. It may include integrating our model into a
retailer’s existing ecosystem or developing a standalone application that is to be used by
retailers
CHALLENGES IN OUR PROJECT

• DATA QUALITY : Data should be complete, consistent and error free

• DATA AVAILABILITY : Data should be sufficient for analysis
• MODEL INTERPRETABILITY : Ml models should be easier to interpret
• COMPUTATIONAL RESOURCES : ML models can be computational intensive requiring powerful
computer and specialized software.
OBJECTIVES
• MAXIMIZING PROFIT
• REMAINING COMPETITIVE
• TO INCREASE SALES
• IMPROVING CUSTOMER SATISFACTION
• OPTIMIZE INVENTORY
TIMELINE
LITERATURE REVIEW
• Retail price optimization has been a significant area of research in recent years. With the
emergence of big data and machine learning, retailers can now utilize these
technologies to optimize prices in real time. The use of machine learning algorithms for
retail price optimization is an emerging field of research. Various approaches, such as
linear regression, time-series analysis, neural networks, reinforcement learning, and
deep learning, have been proposed to optimize retail prices in real-time. These
approaches are more effective when the quality & quantity of data is good & sufficient
respectively and we are using good strategy and understand the competition in the
market.
REFERENCES
• “OPTIMIZING THE PRICE OF RETAIL PRODUCTS” BY GOOGLE CODELABS
• “RETAIL PRICE OPTIMIZATION” BY KAGGLE
• “SALES-FORECASTING OF RETAIL STORES USING MACHINE LEARNING TECHNIQUES” PUBLISHED
AT IEEE XPLORE
• “MACHINE LEARNING METHODS TO PERFORM PRICING OPTIMIZATION” PUBLISHED AT
RESEARCH GATE
• “PRICING OPTIMIZATION CASE STUDY” PUBLISHED AT RESEARCH GATE
THANK YOU