Create competitive_price_matching.md
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Dynamic Pricing/competitive_price_matching.md
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# Competitive Price Matching & Response Playbook
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**Document ID:** PR-MATCH-002 | **Version:** 3.4 | **Owner:** Director Pricing Ops
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**Effective:** 2025-02-01 | **Review Cycle:** Quarterly
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## 1. Purpose
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Defines the competitor set, price intelligence sources, match execution
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rules, exclusions, and time limits for price matching across in-store and
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online channels.
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## 2. Competitor Set
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### 2.1 Tier 1 (Always Match)
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- Amazon (retail, not marketplace)
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- Target
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- Kroger
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- Costco (member price, unit-normalized)
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- Sam's Club (member price)
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### 2.2 Tier 2 (Match on KVI only)
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- Aldi, Lidl, Publix, Albertsons, regional grocers
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- Best Buy, Home Depot, Lowe's (category-specific)
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### 2.3 Excluded
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- Marketplace/third-party sellers
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- Membership-only prices requiring paid membership (except Sam's/Costco)
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- Clearance, liquidation, going-out-of-business
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- Bundle or subscription pricing
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- Prices requiring rebate, coupon, or loyalty redemption
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## 3. Price Intelligence Sources
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| Source | Frequency | Coverage |
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|---|---|---|
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| Scraping vendor (Retail Data Co.) | Daily | 85% of Tier 1 SKUs |
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| Store audits (mystery shop) | Weekly | Top 500 KVIs |
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| Customer reports (app) | Real-time | All SKUs |
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| Partner data feeds | Daily | Amazon, Target |
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## 4. Match Execution Rules
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1. Match price must be **verified** via at least one authoritative source.
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2. Match applied within **24 hours** of verification.
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3. Match duration: **minimum 14 days**, maximum 90 days.
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4. Match applies to **identical item** (same UPC, size, flavor).
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5. Online match: applies to Walmart.com and app; must include shipping.
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6. In-store match: cashier or customer service can execute at register.
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## 5. Exclusions & Edge Cases
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| Scenario | Rule |
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|---|---|
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| Competitor out of stock | No match |
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| Competitor price < our cost | Escalate to Pricing Strategy |
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| Bundle pricing | No match |
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| Membership price | Match only if we have equivalent membership |
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| Regional price variance | Match local market price only |
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| Online-only price | Match on Walmart.com only |
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## 6. Customer-Facing Policy
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Walmart does **not** currently offer a general "price match guarantee"
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at the register except for:
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- Identical item at a Tier 1 competitor within 7 days of purchase.
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- Walmart.com price differences.
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- Marketplace item price errors.
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Customers must provide proof (receipt, screenshot, ad) and request must
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be made within **7 days** of purchase.
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## 7. KPIs
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| KPI | Target |
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|---|---|
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| Match execution time | ≤ 24 hrs |
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| Match accuracy | ≥ 99% |
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| Customer match satisfaction | ≥ 4.5/5 |
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| Margin impact of matches | ≤ 1.5% of category sales |
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## 8. Escalation
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- Store-level: Customer Service Manager
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- Regional: Pricing Ops Analyst
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- Corporate: Director Pricing Ops (within 24 hrs)
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