Market Insights

Retail Case: Is brand performance always consistent across channels?

by Jimmy Ho ¬ 12/13/2017

“Last Christmas, I gave you my heart. But the very next day you gave it away… ” Christmas is around the corner. Different retailers have already displayed tons of chocolate products to capture this festive sales. Here are some surprising results from a recent nationwide chocolate audit in Hong Kong.

(Nationwide Chocolate Audit in Hong Kong for 5 major festive chocolate brands, covering multi channels for 112 stores: Chain Supermarkets (ParknShop, Wellcome & Vanguard), Chain Convenience Stores (7-11 & Circle K), Chain Drug Stores (Mannings & Watsons), Independent Drug Stores and Emerging Channels (759 Store, Bestmart360 & Prizemart))

  • Shelf space of 5 major chocolate brands varied across channels – Compared to last year, shelf space of 5 major brands is significantly increased by 33% at Chain Supermarkets, whereas it is decreased by 20% at Chain Convenience Stores and remains the same at other channels.
  • Shelf space per SKU varied across channels – Although Almond Roca has fewer SKUs, it is given considerable shelf space across channels especially in Chain Supermarkets, Chain Drug stores and Emerging Channels. The difference can be more than 100% when comparing same chocolate brand under different channels.

ROS23 Data Table1

Remark: The yellow highlights the champion in shelf space per SKU for that specific channel. No Chocolate shelves are found among the samples of Independent Drug.

  • Number of Secondary Display Units is not proportional to Brand prominence – In festive season, Chain Supermarkets are always loaded with Chocolate floor stack, mega display, Gondola and dump bin etc. Great number in 2nd Display Unit is not necessary to be great in brand prominence. Brand A, B and D have comparable 2nd Display Unit. But, the brand prominence of Brand A is significantly more outstanding than them at Chain Supermarkets.
  • Share of 2nd Choco Display Unit varied across time – Last year, the share was dominated by one brand (around 35%). But, it is not the same case this year as there are 3 brands with similar sharing (from 27% to 32%). The gap between the top 3 is getting closer and closer.

ROS23 Graphic 1

 

ROS23 Graphic 2

  • Price can be a big surprise for a specific product across different channels – Ferrero Rocher T30 375G with original price (HK$107) at CVS is sold at HK$52 in an independent drug store located in Sheung Shui – a 48% difference!

With a better understanding of the shelf space and 2nd Display information, it helps us in driving the execution excellence and setting the priorities. Sales performance in Christmas could be a good indicator of Chinese New Year. The more you know, the better decision you can make.

Using the latest retail audit technologies, it’s possible to quickly and easily compare SKU level performance metrics and access backup imagery for any location – all in real time. In a single glance, for any SKU, check;

  • Stock levels/ OOS status
  • Current and/ or promotional pricing
  • Floor stacking, secondary display
  • …and any other metric of interest

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