Retail audit covers distribution channels such as supermarkets, shops, kiosks, pavilions, open markets.

Retail audit allows to conduct a study of various parameters of retail trade in dynamics: assortment of goods of various groups in retail trade, placement of goods in retail premises, variety of packaging, price level of competing brands, etc. The information received is grouped according to various criteria (price groups, packaging, presence of additives, etc.). Thus, a complete map of the positioning of the studied product group is formed. The value of such a picture lies in the possibility of projecting the obtained data onto the entire local market selected for research, which is possible only with the correct formation of a sample of outlets.

Research tasks for the solution of which the retail-audit methodology is used:

• Monitoring and analysis of market prices over a selected period of time. The research includes a series of periodic price snapshots of the market at regular intervals by auditing the retail chain and interviewing potential consumers.
• Formation of a database of enterprises An effective sales policy is a prerequisite for the successful operation of a company in the market. It is important for the management of any commercial enterprises operating in the FMCG market to know where the outlets are located through which it is possible to sell their products, and most importantly, how many outlets have still remained without their attention. Sooner or later, each firm is faced with the need to expand its client base. As a result of the research, we receive a complete database of enterprises in the region, which will allow us to expand our client base, organize promotions, organize our own research, and assess the competitive environment.

Cost of work

The cost of retail audit work is from 5 to 11 rubles per position.

Examples of our research

Cigarette survey (Home test)

By order: TNS-MIC, Moscow

Assessment of the quality of work of employees of a network of furniture salons

On request: Information confidential

The success of this research depends not only on the volume and quality of the estimates, but mainly on how we analyze them and how we can make them work in the best interests of the company. Using a real study as an example, we will demonstrate the results that Retail Audit can give us.

Material for work - table

For the analysts of the company that ordered the Retail Audit report, the table itself serves as the main material. As an example, the article uses the results of Retail Audit in the form of several spreadsheets, each of which contains more than 2600 lines, that is, more than 2600 types of goods, and 28 columns with different characteristics of sales of each type of goods.
Companies that ordered a Retail Audit and received a corresponding report often use it as a reference to find answers to the questions: “What is the average price of my brand in a supermarket?”, “What is the average price of a competing brand?”, And “What is the numerical distribution both brands? " The importance of answering such questions is beyond doubt. However, it is puzzling to deliberately limit the use of the Retail Audit report only to obtaining reference information, especially when the seller orders and receives such reports on a regular basis.
In this case, the company has at its disposal material for analyzing the dynamics of the retail market and, in some cases, forecasting.
This article discusses a possible approach to working with Retail Audit data, and also provides an example of processing the data of several Retail Audit reports for a specific product, relating to different periods of time.

Purpose and objectives of audit analysis

The goals and objectives (or the need for the formation of goals and objectives) set by the company determine the form and content of the questions, the answers to which should be provided by the Retail Audit data analysis.
Almost any company, when analyzing the market for its goods using Retail Audit, wants to have an answer to the following questions:

• What is the market for my product as a whole, how does its sales volume (average price, distribution *) change in retail?
• What is the number of market participants and brands present, how has it changed recently?
• Who are my competitors? Who is in close positions, retailing at the same price and in the same volume?
• How are my competitors developing? How are their retail sales changing? How are these changes compared to my brand's sales dynamics?
• What is the numerical distribution of my brand and competitors' brands? What changes have occurred in the size of the numerical distribution recently and how has this been reflected in the sales volumes?
• What is the retail price of my brand and competitors' brands? How have prices changed recently?

Of course, it is far from always possible to formulate an absolutely adequate list of questions, if only because the actions of competitors are difficult to predict, and the whims of buyers are not obvious. It may be that a new packaging of a competing brand product released to the market is steadily increasing consumer demand for all packaging options for that brand on the market. Such a conclusion may well be drawn based on the analysis of Retail Audit data, but it is rather difficult to predict such a situation in advance, and even more so to formulate it in the form of a specific question. The potential for unpredictable, non-obvious conclusions is one of the reasons that makes working with massive amounts of data fun, while leaving room for creativity.

Defining Analysis Parameters

Consider a company that sells goods X. The company offers the consumer several brands of goods X, the most popular of which is the brand N. The company is quite successful, well known to the consumer and is one of the market leaders. For the next year, the company has set itself a goal: to bring a new brand of product X to the market and achieve a leading position in sales of a new brand of this product. The company has at its disposal several reports on the results of the Retail Audit of product X, carried out within the last 20 months. And now the company has set before the analytical department the task of analyzing this data in order to supplement and concretize the company's understanding of the market for product X and the position of the brand N in this market.
The analysts of the company decided to analyze the state of the market as a whole and its changes in recent years from several points of view, as well as to conduct a deeper analysis of the positions of competitors of the existing trademark N. Additionally, it was decided to investigate the positions of the elite trademark S, also offered by the company on the market and unpopular with a mass buyer from the point of view of a possible refusal to work with elite brands of goods and concentration of the company's efforts only on mass brands.
The next step after setting the problem is to determine the parameters in which the analysis result will be presented. Sales characteristics presented in the Retail Audit report can be selected as parameters. Along with them, new parameters can be introduced, obtained on the basis of criteria independently formulated by the analyst. The parameters can also be combined with each other, which allows information to be displayed in a wide variety of angles.
Let us refer to the data on the monthly sales volume of the brand N in the sales volume of the product X
In the figure, the growth in sales of the N brand was 14%, while the market growth was 24%, the share of the N brand in the total sales decreased by 1% (from 10.5% to 9.5%).
Before continuing to analyze the data and trying to find possible reasons for the decline in market share, analysts decided to introduce their own analysis parameter - the price level.
Based on this parameter, four price segments of product X were identified: low-price, mid-price, Premium and SuperPremium. At the same time, the following segment boundaries were chosen:

• low-price segment - the price of product X in a standard package is less than 60 rubles per unit of product;
• mid-price segment - the price of product X in a standard package is less than 120 rubles per unit of product;
• segment Premium - the price of product X in a standard package is less than 210 rubles per unit of product;
• SuperPremium segment - the price of product X in a standard package is more than or equal to 210 rubles per item.

As a result, analysts got an idea of ​​the market distribution by price segments and the dynamics of this distribution (see Fig. 2).
It can be seen that during the period under consideration, the consumption of goods X not only increased, but also the consumption pattern changed. The buyer is less and less focused on cheap brands, the share of which in the total volume of retail sales has decreased by 12%, he prefers the mid-price segment. In addition, retail sales of fairly expensive brands (premium segment) have doubled during this time, although their share in total sales is still small.
The N brand is in the middle price segment.
The company intended to position the new trademark in the same segment, at the same time the company decided to consider the possibility of positioning the N brand in a more expensive version in the Premium segment.
Figure 3 shows the combination of the parameters "price segment" and "brand" of product X in accordance with the belonging of each brand to a certain price segment.
The result demonstrated the withdrawal from the market of cheap brands of product X and a probable tendency towards saturation of the market with brands of the mid-price segment, more or less constant growth in the number of brands in the Premium segment and stagnation of the market in terms of the number of brands in the SuperPremium segment.
More than 100% growth in the number of brands in the mid-price segment demonstrates a serious increase in competition, which was one of the reasons for the previously identified weakening of the positions of the N.
The next step in the work was to consider the market in terms of the distribution of retail sales by the volume of packaging of goods X (Figure 4)
The result revealed a gradual increase in the popularity of purchasing product X in a package that is larger than the standard size. The most obvious explanation for this phenomenon is the desire of the buyer to save money, because a large package is cheaper per unit of production. But taking into account the growth in the consumption of goods X in general and the growth of incomes of the population, as well as the decrease in the share of consumption of cheap brands of goods X, we can conclude that the trend under consideration is more likely due to changes in the socio-cultural context of the consumption of goods X. These changes can be expressed in the following: that when making a purchase of goods X, the buyer is guided not by one person (himself), but by a group of people, as well as by the growing practice of forming a permanent home assortment of goods X.
The company's management made the following decision regarding the new brand of product X: to offer the market a new brand not only in standard packaging, but also in larger packages, as well as to conduct an additional detailed study of consumer preferences in order to operate as can be more accurate information about the profile of today's consumer of product X, the reasons and conditions for making the purchase of product X and the choice of a specific brand and volume of packaging.

Analysis of the positions of competitive market participants

In this example, the number of brands for product X is 200 in January 2002 and 345 in September 2003.
Analysts of the company, along with the analysis of the market as a whole, began to study the positions of competitors of the N trademark - trademarks of the same price segment, occupying the closest positions in terms of retail sales. Analysts examined the positions of the N brand and its competitors in terms of sales volume, numerical distribution and the average price of product X in a standard package.
In Figure 5, you can see that brands B and F are showing explosive growth in sales and numerical distribution. Moreover, the volume of sales of the brand B grows faster than the sales of the brand F and exceeds the latter with a lower level of numerical distribution. Both brands belong to manufacturers that have long been known to the market and have proven themselves on the positive side in the eyes of the consumer. Comparison of prices shows a significant difference in price between the two brands, which is most likely the reason for the more successful conquest of the market by brand B. The clear tendency to narrow the price range in which all three brands operate, signaling a possible abandonment of the use of price as a competitive differentiator. for brand N from brand F, representing a similar in quality, but more expensive product, and from brand B, the initial cheapness of which could cause doubts among consumers about the quality of the product.
The main conclusion of the analysts was as follows: when a new brand of product X is launched on the market at the same or almost the same price as the brand N, the company will not be able to appeal to the price as a competitive advantage, and the set of marketing measures developed to position the new trade mark brand should be focused on other advantages of the new brand in the eyes of the consumer.
Analysts also examined the positions of the elite brand S (the brand belongs to the SuperPremium segment). The volume of sales of product X under the elite trademark is small, and the company was likely to abandon the elite direction in favor of the mass one.
A comparison was made between the positions of the brand S and the competing brand Q, which is one of the leaders among the elite brands of product X, and also serves as a reference point in the development and launch of the company's brand S (Figures 6 and 7)
The conclusion was the following: since the S trademark demonstrates positive sales trends, then abandoning it is not necessary, especially since the company's image only benefits from the presence of an elite brand in the assortment portfolio. Therefore, if the economic feasibility allows the preservation and development of this brand, efforts should be made to increase its numerical distribution while maintaining the achieved price level.
Thus, Retail Audit helped to draw a number of important conclusions and concretize the view of the market for more precise setting of tasks for future research.
In conclusion, we note that despite the size and cumbersomeness of the reports, the Retail Audit data does not deserve to serve as a momentary reference, and then be forgotten on the top shelf somewhere in the analytical department. This is the material with which you can and should work.

reference

Retail Audit is a periodic collection of information about the statistics of sales of a certain product in retail outlets with the subsequent generation of a report.
The report fields contain the following data on product sales: manufacturer, brand name, sales volume, average price, numerical distribution, distribution channel, etc.
In most cases, the Retail Audit report is a spreadsheet, where the number of rows corresponds to the variety of types of retail goods, and the column headings are the characteristics mentioned above. Sometimes, in addition, such a report can also present the results of the primary data analysis, for example, the distribution of the total volume of sales of goods by types of outlets.

It is better to see once than hear a hundred times. This is the principle behind retailer control technologies. For each type of monitoring, individual maps of information collection and, if necessary, special equipment are developed. ScanMarket designs monitoring based on the requirements of accuracy and efficiency. This allows obtaining sufficiently detailed "photographs" of how various sellers fulfill / do not fulfill the conditions of cooperation with manufacturers / suppliers.

Work results

Depending on the goals of the project, the result can be a table or a full-fledged report with the analysis of the data obtained. For example, when analyzing the supply of print media, the report includes the calculation of indicators:

• Representation (in general, in terms of types of outlets, in terms of operators, in terms of days of the week, in terms of districts);
• Price (in general, in sections);
• Layout (in general, in sections);
• Seller recommendations.

When measuring the supply of food products, several characteristics of the product (brand, manufacturer, weight / weight, packaging material, fat content, etc.) are often included in the list of fixed parameters. The monitoring results are used to improve distribution policy, form partnerships with retail chains, control and incentivize (discourage) retailers.

Complex of works

1. Determination of product characteristics and parameters of the retail network. Before monitoring, you need to select the parameters that will be monitored. For this, at the initial stage of the study, expert interviews are conducted with representatives of the target group and employees of the Customer company. Based on this information, a list of product characteristics (price, capacity, material and form of packaging, type of product display, etc.) and parameters of the retail network (recommended by the brand seller) is formed, which will be studied in detail during marketing monitoring.
2. Sampling of retail outlets. To obtain reliable data, it is necessary to correctly form the sample of retail outlets where the observation will be carried out. The final sample should be, firstly, accurate (provided by a sufficient number of surveyed points), and secondly, representative (this property of the sample is achieved by a special system for selecting various types of points in which the observation will be carried out). Information about retail outlets must be up-to-date and detailed.
3. Development of the observation sheet. The observation list is a specially designed form for recording information about the parameters that are being covertly monitored. The observation list should contain information about the parameters of the observation itself - the address and type of point visited by the observer, the time of observation and a number of other characteristics.
4. Covert observation of the selected parameters: representation in the sale, display of products, prices, work of sellers, characteristics of the products presented. Covert surveillance is a field part of the project. Specially trained observers receive observation sheets, as well as, if necessary, additional illustrations with photographs of the observed products and move along the established routes.
5. Information reliability control. The monitoring carried out by the ScanMarket agency provides for the use of several means of control of employees collecting information.
6. Input, processing and analysis of the information received. Observation sheets are entered into the computer using an automatic scanner input. Further, the agency's analysts carry out the necessary data coding, analyze them and build the necessary distributions in accordance with the goals and objectives of the marketing research.

Some retail outlets require a special approach to conduct a retail audit. For example, in some hypermarkets, the security service suppresses attempts to rewrite the assortment, and in small clothing stores, all actions of the rewriter are in full view of the seller.

ScanMarket Agency conducts field work in any conditions. When developing a sheet, it is necessary to provide for an unambiguous interpretation of the observed parameters. For example, what should the observer indicate in the column "Producer" for the milk "House in the village" - the company "Wimm-Bill-Dann" or "Lianozovo"? What to write if the manufacturer information is not visible? Working through these and similar details is an important preparatory part of the project. Its result is the preparation of special cards, which show photographs of the products of the main market operators.

In case of difficulties in determining the price or the availability of goods for sale, it is possible to obtain information from the seller. ScanMarket uses the ABBYY Flexi Capture optical recognition system - automatically scanned input of questionnaires eliminates manual input errors and significantly reduces the time it takes to form even a very large automated database.

Publishing house "RDV-Media"

The publishing house "RDV-Media" actively cooperates with the ScanMarket agency.

Due to the wide range of periodicals produced by our publishing house, monitoring of the Moscow retail network is of particular interest.

Despite the fact that such works were regularly carried out on their own and part of the information can be obtained from distribution companies, the ScanMarket study turned out to be necessary and useful. The attractiveness of the results of this study in the large coverage of retail outlets, the daily collection of information during the week and the adequate cost of work.

To carry out the project, the ScanMarket agency has specially developed a methodology for collecting and processing information, which is based on our wishes expressed before the start of the project.

The report with the research results has a clear structure, is easy to use and will become a real tool for the work of our employees.

We would like to express our gratitude to ScanMarket agency for the high-quality work performed and look forward to regular conducting of this research.

LLC "GidMarket"

Since 2007, the marketing agency GidMarket LLC has been actively exploring the industrial markets of Russia, Kazakhstan, Europe and Asia. The main product of the agency is market analysis based on government statistics, paid databases, industry sources and open data.

Marketing agency GidMarket LLC expresses its sincere gratitude to MA Scanmarket LLC for fruitful and mutually beneficial cooperation in the field of field research.

We highly value the level, efficiency and, most importantly, the timeliness of the solutions provided by your company. We are planning further cooperation with LLC "MA" Scanmarket "in the field of b2c and b2b surveys, retail audits and in the projects of" Mystery Shopper ".

tools and capabilities

KEY SERVICES

Trade audit

For success in the retail sector, you need to be able to timely adjust to the needs of the target audience, to adequately respond to the marketing moves of competitors. It is important to subtly feel the change in trends and closely monitor sales. This does not require paranormal abilities: it is enough to have reliable data. A retail audit will help you get them - a comprehensive assessment of the work of a single point or an entire chain of stores.

An audit of a commercial enterprise provides answers to the following questions:

• What are the competitors' pricing, assortment and trade marketing policies?
• Does the layout and volume of product display on the shelves correspond to the previously reached agreements recorded in the planograms? Are the product storage conditions observed?
• What types of POS materials are used, are they appropriate? How effectively is branded equipment (refrigerators, racks) used?
• How competent are sellers, merchandisers, cashiers, on whose professionalism the reputation of goods among buyers depends?
• Are there opportunities for sales growth?

Also, the audit of retail outlets allows you to determine the density of the customer flow, assess the gender and age composition of visitors, and calculate how much time, on average, they spend on searching and choosing a product.

Thus, a retail audit helps, on the basis of which the manufacturer will decide how to influence the level of sales of his product.

Trade audit from the ITM group agency

A sales organization audit is a time-consuming task that requires specialized knowledge, experience and specialized software. Therefore, manufacturers often outsource this task to the ITM Group. The cost of a store audit can be high, but it is an opportunity to correct mistakes and give the business new perspectives.

We work throughout Russia and the CIS. Organization of accounting / audit of a trade organization from ITM Group is:

• our development - Staff Mobile application with photo-recognition technology that processes hundreds of SKUs in 5 minutes. Integration into your SFA solution is possible!
• fast receipt of test results: in just a few minutes you will be aware of all violations and will be able to take timely action;
• getting project data 24/7;
• retail audit, which will cover thousands of stores and hundreds of positions;
• online monitoring: collection of data on everything that happens to the goods on the Internet, including dumping and unfair competition;
• Mystery Shopping services: a kind of audit of sales representatives, the opportunity to obtain objective information about the skills of the staff;
• multichannel audit: a combination of telephone surveys, desk research, point-of-sale and online marketplace audits;
• wide territorial coverage: we have 10 offices and more than 130 representative offices in Russian cities, which allows us to solve problems such as audit of a retail network on a federal scale.

Marketers, sociologists and analysts of the ITM Group agency organize a trade audit in Moscow and other regions of the Russian Federation and the CIS.