Market Insights

Retail Case: Measuring the Visual Inventory of Indonesias CVS Drink Coolers

by Grant Beuzeval ¬ 02/27/2018

A picture is worth a thousand words and, a picture, is what a thirsty consumer sees when they look at the drinks fridge in a store – a picture with possibly a thousand facings.

You see, thirsty consumers will often make decisions right there at the glass doors of the fridge – the point of sale. Even to a determined water drinker, a blazing row of glistening red cans at eye level can be distracting on a hot day. In a compact convenience store, a drinks fridge is prime real estate.

Coke

As a manufacturer, having your product available and on the shelf is only the first enabler. The next step is to “own” the category, or SOVI (Share of Visual Inventory), on the shelf or in the cooler which requires an astute orchestration amongst the brands trade marketers, the retailers, the distributors and the merchandisers. Furthermore, how could this ever be monitored and optimised in a timely fashion across large geographies?

Real-time, retail-auditing to the rescue.

SmartRocket agents in Jakarta, Indonesia, recently conducted a snap audit of the drinks coolers in 153 Alfamart and Indomaret convenience stores (CVS) to examine the availability and number of facings of 23 drinks products in 7 drinks categories. Here are some of the findings.

  • Supply and Demand
    • The average drinks fridge has just 150 facings (Alfamart 155, Indomaret 145), meaning the front row facings are short on supply and all the more valuable.
    • Compare this to Hong Kong where franchised CVS coolers average 215 facings
  • Tea is crushing the cooler
    • Sweetened (25%) and Unsweetened (5%) ready-to-drink teas are commandeering the fridge real-estate with a combined 30% of all facings, averaging 45 facings.
    • The rest of the field (waters, sparkling soft drinks, sports drinks, RTD coffee and juice drinks) are average 12-15% of the facings.

Chart 1 - category SOVI

  • Ubiquitous giants
    • Several products reached near 100% availability
      • Aqua (waters)
      • Coco-cola, Fanta and Sprite (sparking soft drinks)
      • Minute Maid (juice drinks)
      • Mizone (sports drinks)
      • Frestea (sweetened teas)
      • ICHI OCHA and MYTEA oolong tea (unsweetened teas)
    • Retailer Favouritsim
      • Product availability was reasonably consistent across the two retailers but…
        • Coke Zero was available in 21% of Alfamart coolers but just 3% of Indomarets’.
        • Pepsi was available in only 70% of Indomarets coolers but just 15% of Alfamarts’.

Chart 2 - Product availablity by channel (new)

  • SOVI Kings
    • When it comes to overwhelming the competition with visual inventory (facings), there are winners and there are those in second place.
      • Minute Maid (of Coca-Cola) is the Jakarta champion in the SOVI championship with an average of 17 facings and 77% of the juice drinks category.
      • Aqua (of Danone) is averaging 13 facings (Alfamart 7 and Indomaret 14.2) and 56% of the visual inventory in the water category.
      • Fanta (10.0 facings) beats off sister products Coca-Cola (8.1) and Sprite (7.9) in the sparkling soft drinks facings domination but together they amass a powerful 71% of the share of visual inventory in the category.
      • Pepsi lags their perennial competitor cola, averaging only 2
      • Meanwhile in the sweetened teas, Frestea (by Coco-Cola)boasts 15 facings and 39% of the category SOVI

Alfa and Indomaret

Across different countries and different channels, a variety of controlled and uncontrolled factors will influence the number of facings and SOVI afforded to a product on a shelf but as Peter Drucker once noted, “what gets measured, gets managed”.

Through real-time retail auditing, our clients can measure, manage and optimise their retail execution and unlock hidden opportunities over the extremely short, the mid and the long terms with the SmartRocket service in Hong Kong, Taiwan, China, Singapore and now, Indonesia.

Get in touch for a chat so that we can help you in real-time – not next time.