Benefits of Retail Audit, Market Price and In-Store Stock for Principals
Table of Contents
Most principals and producers delegate the responsibility of distributing products to their distributors. However, this also makes the principal become less aware of the situation in the real market. In fact, retail audits, including product availability to the store level, are increasingly becoming more important to maintain company competitiveness. Therefore, in order to not lose to competitors, companies must start looking for ways to collect and monitor in-store data.
Principal’s Concerns Regarding Product Distribution
1. Stock level in stores
With a wide area to cover and a large distribution chain, sometimes principals don’t know the stock level of their product in each store. If stock runs out, customers can switch to competitor products. Especially for FMCG products that sell quickly and have a short shelf-life, shelf monitoring has a huge effect on profits.
2. Product pricing set in each store
Not all principals have information about stores, therefore, they rely on area distributors to regulate and monitor retail product pricing. However, this strategy is sometimes not good enough, as it can create a blindspot where the principal cannot know exactly how much the stores are charging each product. If there are stores who charge too low or too high, it will end up damaging the brand.
3. Ensure a good planogram
Apart from product pricing, another thing that can hurt branding is a sloppy and inconsistent planogram. Leading brands compete with each other for the most strategic shelf space and to create the most attractive program. Therefore, the principal must monitor if the shelf space and promotions are not utilized optimally.
4. Monitor competitors
In order to analyze product pricing in the market for similar products, and decide on a competitive price, the company must also monitor in-store data of competitors’ products. In addition to prices, companies must also know the competitors’ stock levels and marketing strategies so that their brands remain the superior products.
5. Promotions implementation at the store level
When the principal has designed a promotional program for customers in stores (for example, discounted price) that is not executed by stores in actuality, it will definitely be a waste of marketing research resources. Therefore, companies need to check the implementation of promos in stores, whether they have been implemented and promoted to customers who come.
Advotics Market Info
Market Info is a feature in Advotics Distribution Management System that can help companies run retail audits for the company’s and competitors’ products. Starting from shelf monitoring, stock levels of goods in various areas, selling prices in stores, expiry date, until planogram documentation (shelf space, available promotions, etc.), so that the product will remain the leading product in the market.
How Advotics Market Info Works
Every time a salesman/merchandiser visits a store, they can fill out a market info report directly from the app. Then, the system will process the report so that employees in the office can monitor all field activities. At the same time, sales managers can also create more accurate sales strategies based on real-time data from the field.
- Product detail information by product SKU (stock level, expiry date, ongoing promos, etc.)
- Priority/mandatory products that must be filled in the market info report
- “Same as before” option if the product price does not change, to speed up report input
- Planogram photo
- Summary of product selling prices along with details of the highest, lowest, and average prices
- Recommended sales order quantity if the product is declared under-stock