Market Insights

Retail Case: Just how different is product performance across different channels?

by Jimmy Ho ¬ 12/21/2016

“Jingle Bells, Jingle Bells, Jingle All the way…” Xmas is just around the corner and we hope you have your champagne, turkey chicken and Christmas cake ready! But don’t forget the chocolate – one of the key highlights in the party! Here are a few interesting results from a recent nationwide chocolate audit in Hong Kong.

(Nationwide Chocolate Audit in Hong Kong for 5 major festive chocolate brands, 100 stores across 4 channels: Chain Supermarket (ParknShop, Wellcome & Vanguard), Chain CVS (7-11 & Circle K), Chain Drug (Mannings & Watsons), Independent Drug and Emerging Channels (759 Store, Bestmart360 & Prizemart))

  • Emerging Channels are gaining in importance – Chain Supermarkets have around 14 units of secondary display units (i.e. Dump Bin, Floor Stack and Gondola) whereas Emerging Channels have an average of 9 units. Quite comparable to the regular chains.
  • Big differences in brand availability by channel – In general, all the brands are present at Chain Supermarkets, but results are highly varied across other channels, where just a few brands dominate. In Emerging Channels, Meiji and Mars are the major brands on offer.
  • Number of SKUs not directly proportional to shelf space given – Mars has the greatest number in both Chain Supermarket and CVS. Even with less SKUs, Ferrero is given on average 20- 35% more shelf space in these channels.
  • There can be big differences in price for a specific product across different channels – Ferrero Rocher T30 375G with original price (HK$95.5) at CVS is sold at HK$50 in an independent drug store located in New Territories – a 48% difference!

Using SmartRocket real time retail audit data, identifying locations with low selling prices is fast and efficient – enabling investigations to be carried out in a timely manner (e.g. checking parallel goods, etc). and based on these findings, the correct actions can be determined (e.g. reshuffle the promotional effort/ propose new trade argument with retailers). Last but not least, don’t forget the share of your product and POSM in different channels. It can be critical to make your product being the chosen one during Xmas. Merry merry Christmas!!

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

Red Ocean Solutions – Real time Retail Audit and Intelligence from any Location.

Find out more here.