Close
    HomeResearch & Knowledgeback to HomeEntrepreneurshipback to Research & KnowledgeRetail Rocket: Personalizing the online shopping experienceback to Entrepreneurship
    Case Study

    Retail Rocket: Personalizing the online shopping experience

    By Benoit F. Leleux and Marc Chauvet
    16 pages
    December 2020
    Order this case study
    Reference: IMD-7-2129

    The case, based on extensive interviews with Retail Rocket’s co-founders (Nikolay Khlebinsky and Andrey Chizh), several employees and one of the start-up’s investors, documents the genesis and rapid growth of the company. Launched in 2012 in Moscow, Russia, Retail Rocket was a big data-based personalization platform for e-commerce and omnichannel retail identifying the needs of customers based on their online behavior and, thanks to artificial intelligence, offering personalized product recommendations through the website, e-mail and other marketing channels, increasing the conversion rate, average order value and retention rate of its clients. In effect, it makes available to small and mid-sized online firms the same website optimization functionalities associated with powerhouses such as Amazon or Yandex. Its value proposition included superior shopping-pattern prediction algorithms and value-based pricing using randomized A/B testing. What would it take to monetize and grow its exceptional IT competencies?

    Learning Objective
    • Capitalizing on big data analytics, developing top-quality algorithms and artificial intelligence tools to generate insights from consumers’ online shopping patterns
    • Doing business in Russia and Eastern Europe
    • Developing a unique value proposition in a contested marketplace
    • Differentiating through the business model, in particular value-based pricing
    Keywords
    Entrepreneurship, Operations, Marketing, Big Data, Artificial Intelligence, Value Pricing, Search Engine, Optimization, Online Business, Business to Business, Digital Marketing, Traffic
    Settings
    Eastern Europe, Russia
    Retail Rocket, Information Technology, eCommerce, Information Technology
    2012-2020
    Type
    Field Research
    Copyright
    © 2020
    Available Languages
    English
    Related material
    Teaching note, Video
    Case clearing houses
    IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

    The Case Centre

    Cranfield University

    Wharley End Beds MK43 0JR, UK
    Tel +44 (0)1234 750903
    Email [email protected]

    Harvard Business School Publishing

    60 Harvard Way, Boston MA 02163, USA
    Tel (800) 545-7685 Tel (617)-783-7600
    Fax (617) 783-7666
    Email [email protected]

    Asia Pacific Case Center

    NUCB Business School

    1-3-1 Nishiki Naka
    Nagoya Aichi, Japan 460-0003
    Tel +81 52 20 38 111
    Email [email protected]

    Copyright Information

    IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Entrepreneurship
    Operations
    Marketing
    Artificial Intelligence
    Browse all topics
    Discover our latest research
    IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics
    All case studies
    Keep reading
    Video
    Clee Medical: Making brain surgery safer

    Swiss startup Clee Medical is revolutionizing brain surgery with real-time imaging technology that boosts precision, safety, and patient outcomes.

    Entrepreneurship Innovation Technology Management
    By Jim Pulcrano
    in I by IMD
    Read more
    Report
    AI strategies that are working

    IMD’s 2025 AI Maturity Index highlights how leaders of the most successful companies are scaling AI technologies across 10 industries for competitive advantage

    Artificial Intelligence Strategy
    By Tomoko Yokoi, Michael R. Wade and Jialu Shan
    IMD White Paper, November 2025
    Read more
    Article
    Stop running! Why you may be implementing AI pilots the wrong way

    Unlock GenAI’s full potential by going deep and narrow: focus on strategic opportunities, lasting advantage, and meaningful impact over quick wins.

    Artificial Intelligence Innovation Strategy
    By Goutam Challagalla
    in I by IMD Brain Circuits
    6 November 2025
    Read more
    Article
    Race for AI dominance is creating competition and new global alliances

    OpenAI’s recent $1 trillion spending spree on chips and computing power shows that artificial intelligence now depends as much on energy and infrastructure as on algorithms. The ChatGPT maker has signed pricey long-term deals this year for greater...

    Artificial Intelligence
    By Amit M. Joshi
    in The National
    5 November 2025
    Read more
    Article
    Stop running so many AI pilots

    In late 2023, when the management team at the consumer packaged goods company Reckitt considered adopting gen AI, potential use cases spanned the business—from drafting presentations to delivering customer support to optimizing procurement contrac...

    Artificial Intelligence Strategy
    By Goutam Challagalla, Mahwesh Khan and Fabrice Beaulieu
    in Harvard Business Review
    November-December 2025, vol. 103, issue 6, pp. 90-99
    Read more
    Article
    The three obstacles slowing responsible AI

    In October 2023, New York City released its AI action plan, publicly committing to the responsible and transparent use of artificial intelligence. The plan included guiding principles — accountability, fairness, transparency — and the creation of ...

    Artificial Intelligence Strategy
    By Öykü Işık and Ankita Goswami
    in MIT Sloan Management Review
    Winter 2026, vol. 67, issue 2
    Read more
    Article
    What does a good AI use case look like? 

    With AI fever in overdrive, everyone is searching for winning AI use cases. However, the process feels like solving a giant jigsaw puzzle without a picture on the box to guide you.

    Artificial Intelligence
    By Didier Bonnet and Achim Plueckebaum
    in I by IMD Brain Circuits
    28 October 2025
    Read more
    Article
    Artificial intelligence machines as relational nonhuman actors in entrepreneurial teams

    We theoretically examine how artificial intelligence (AI) machines interact with and shape strategic decision-making within entrepreneurial teams. First, we explain how AI machines lead and assist teams to engage in cognitively complex decisions a...

    Artificial Intelligence Decision Making
    By Alfredo De Massis and Samuele Murtinu
    in Journal of Small Business Management
    October 2025, vol. 63, no. 6, pp. 2890–2916, https://doi.org/10.1080/00472778.2025.2461031
    Read more
    Article
    Commentary: China ban on Nvidia chips is not just about a trade spat

    China has put its near-term progress in the global AI race with the United States on the line. By banning its largest tech companies from buying Nvidia’s chips, Beijing is forcing ByteDance, Alibaba and others to rely on Huawei and other domestic ...

    Artificial Intelligence
    By Howard H. Yu
    in Channel NewsAsia
    21 October 2025
    Read more
    Article
    Hacking Digital 4: How to work across silos 

    Working in silos is one of the biggest obstacles to digital success. The key to real digital transformation is to align the various business units in the organization. Here’s how to avoid the pitfalls.

    Artificial Intelligence Digital
    By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser
    in I by IMD Brain Circuits
    14 October 2025
    Read more
    Clee Medical: Making brain surgery safer
    By Jim Pulcrano
    in I by IMD
    Summary
    Swiss startup Clee Medical is revolutionizing brain surgery with real-time imaging technology that boosts precision, safety, and patient outcomes.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Entrepreneurship
    Innovation
    Technology Management
    Browse all topics
    AI strategies that are working
    By Tomoko Yokoi Michael R. Wade and Jialu Shan
    IMD White Paper, November 2025
    Summary
    IMD’s 2025 AI Maturity Index highlights how leaders of the most successful companies are scaling AI technologies across 10 industries for competitive advantage
    Read more
    Copyright ©2025
    Copyright owner IMD Copyright
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Strategy
    Browse all topics
    Stop running! Why you may be implementing AI pilots the wrong way
    By Goutam Challagalla
    in I by IMD Brain Circuits 6 November 2025
    Summary
    Unlock GenAI’s full potential by going deep and narrow: focus on strategic opportunities, lasting advantage, and meaningful impact over quick wins.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Innovation
    Strategy
    Browse all topics
    Race for AI dominance is creating competition and new global alliances
    By Amit M. Joshi
    in The National 5 November 2025
    Summary
    OpenAI’s recent $1 trillion spending spree on chips and computing power shows that artificial intelligence now depends as much on energy and infrastructure as on algorithms. The ChatGPT maker has signed pricey long-term deals this year for greater...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Browse all topics
    Stop running so many AI pilots
    By Goutam Challagalla Mahwesh Khan and Fabrice Beaulieu
    in Harvard Business Review November-December 2025, vol. 103, issue 6, pp. 90-99
    Summary
    In late 2023, when the management team at the consumer packaged goods company Reckitt considered adopting gen AI, potential use cases spanned the business—from drafting presentations to delivering customer support to optimizing procurement contrac...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Strategy
    Browse all topics
    Related content
    Article
    Stop running! Why you may be implementing AI pilots the wrong way

    Unlock GenAI’s full potential by going deep and narrow: focus on strategic opportunities, lasting advantage, and meaningful impact over quick wins.

    Artificial Intelligence Innovation Strategy
    By Goutam Challagalla
    in I by IMD Brain Circuits
    6 November 2025
    Read more
    The three obstacles slowing responsible AI
    By Öykü Işık and Ankita Goswami
    in MIT Sloan Management Review Winter 2026, vol. 67, issue 2
    Summary
    In October 2023, New York City released its AI action plan, publicly committing to the responsible and transparent use of artificial intelligence. The plan included guiding principles — accountability, fairness, transparency — and the creation of ...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Strategy
    Browse all topics
    What does a good AI use case look like? 
    By Didier Bonnet and Achim Plueckebaum
    in I by IMD Brain Circuits 28 October 2025
    Summary
    With AI fever in overdrive, everyone is searching for winning AI use cases. However, the process feels like solving a giant jigsaw puzzle without a picture on the box to guide you.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Browse all topics
    Artificial intelligence machines as relational nonhuman actors in entrepreneurial teams
    By Alfredo De Massis and Samuele Murtinu
    in Journal of Small Business Management October 2025, vol. 63, no. 6, pp. 2890–2916, https://doi.org/10.1080/00472778.2025.2461031
    Summary
    We theoretically examine how artificial intelligence (AI) machines interact with and shape strategic decision-making within entrepreneurial teams. First, we explain how AI machines lead and assist teams to engage in cognitively complex decisions a...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Decision Making
    Browse all topics
    Commentary: China ban on Nvidia chips is not just about a trade spat
    By Howard H. Yu
    in Channel NewsAsia 21 October 2025
    Summary
    China has put its near-term progress in the global AI race with the United States on the line. By banning its largest tech companies from buying Nvidia’s chips, Beijing is forcing ByteDance, Alibaba and others to rely on Huawei and other domestic ...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Browse all topics
    Hacking Digital 4: How to work across silos 
    By Michael R. Wade Didier Bonnet Tomoko Yokoi and Nikolaus Obwegeser
    in I by IMD Brain Circuits 14 October 2025
    Summary
    Working in silos is one of the biggest obstacles to digital success. The key to real digital transformation is to align the various business units in the organization. Here’s how to avoid the pitfalls.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Artificial Intelligence
    Digital
    Browse all topics
    Related content
    Article
    Hacking Digital 3: How to develop digital skills within your organization 

    Learning new digital tools, technologies, and business models presents both short-term and longer-term challenges. Here’s a quick guide to the essentials of getting your people up to speed and beyond.

    Artificial Intelligence
    By Didier Bonnet, Tomoko Yokoi, Nikolaus Obwegeser and Michael R. Wade
    in I by IMD Brain Circuits
    9 October 2025
    Read more
    Article
    Hacking Digital 2: How to make the CDO role a success

    The tenure of a Chief Digital Officer (CDO) is relatively short due to a variety of factors. To avoid costly mistakes, design the role around the four key actions below – but start by checking that everything is in place for your CDO to succeed.

    Artificial Intelligence Digital
    By Didier Bonnet, Tomoko Yokoi, Nikolaus Obwegeser and Michael R. Wade
    in I by IMD Brain Circuits
    8 October 2025
    Read more
    Article
    Hacking Digital 1: Building credibility as a new digital transformation leader 

    Credibility is difficult to build and easy to lose for any leader, especially newly appointed digital leaders. Here are some concrete actions and insights that will help you on the journey.

    Strategy Digital
    By Michael R. Wade, Didier Bonnet, Tomoko Yokoi and Nikolaus Obwegeser
    in I by IMD Brain Circuits
    2 October 2025
    Read more