After building the automated markdown optimization application, the team would like to test its effectiveness in a pilot program against a control group to understand what value the tool can bring before committing to a larger rollout.BCG's new "Optimized" tool will be tested on two different products, each time against a"Control" group that will use the client's legacy markdown system. Soy milk, eggs, and skim milk are the three products that have been shortlisted for the pilot, in which two of these will be selected.Three potential stores have been identified for the pilot, with a similar demographic of customers. Stores A and B are within walking distance of each other, while Store C is three metro stops away from both. Also, note that soy milk and skim milk are considered substitutes, such that the pricing of one product can influence demand for the other product.Please refer to the exhibit below for a summary of the different ways the pilot tests could be run.

Automated Markdown Optimization Application - Pilot Testing Control Optimized Control Optimized Control (Soy Milk) Optimized (Soy Milk) Pilot location (Eggs) (Eggs) (Skim Milk) (Skim Milk) Store A No Pilot Option A Store B Store C Control Optimized Control Optimized Control Optimized (Soy Milk) (Soy Milk) (Eggs) (Eggs) (Skim Milk) Skim Milk) Option B Store A Store B Store C Control Optimized Control Optimized Control Optimized (Soy Milk) (Soy Milk) (EggS) (EggS) (Skim Milk) (Skim Milk) Option C Store A Store B Store C Control Optimized Control Optimized Control Optimized (Soy Milk) (Soy Milk) (Eggs) (Eggs) (Skim Milk) (Skim Milk) Option D Store A Store B Store C