Retail Case: Leveraging Pricing Opportunities Across Channels
Pricing of whisky across channels is more diversified than you might think. Do you really know? Setting a right price is key to getting your product moving fast. Here are some surprising results from a recent nationwide scotch whisky audit in Hong Kong.
(Nationwide Scotch Whisky Audit in Hong Kong for all brands, 50 stores: 30 Chain Supermarket, 20 Wine Specialty Store)
• Stores are willing to stock a range of offerings, ranged from average 6 SKU to 34 SKU – Average SKU level of Scotch Whisky at Wine Specialty Store is nearly 5 times to Chain Supermarket. Potential to bring in more SKU?
• White space is different across channels – At Chain Supermarket, 71% of Scotch Whisky falling into the range of $ 0 to $ 600, significantly different from Wine Specialty store with majority falling into either $ 600-$ 800 (27%) or above $ 1,600 (27%)
• A huge price gap across channels– the most expensive 700ml Scotch Whisky costs HK$ 2298 (The Macallan 18 Year Old Single Malt Scotch) at Chain Supermarket whereas it is HK$ 11,800 (The Balvenie 30 Year Old Single Malt Scotch Whisky) at Wine Specialty Store, 5 times more. Any potential for the price point gap?
Getting the right price at right channel is critical. Price trend will change from time to time. A price tracking program will give you the up-to-date market information.
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