For the successful promotion of services and goods, verified and reliable information is especially valuable. There are situations when a lack of data on the market, competitors, or what the target audience prefers, provokes the disruption of stocks, projects, or the entire advertising campaign. Of course, manufacturers and sellers must adapt to the realities of the market and adapt to the external environment, however, this is not so difficult as it seems.
Audit of retail outlets is a comprehensive activity aimed at studying the state of the industry through a comprehensive analysis and monitoring of activities. In this article we will talk about how this study is conducted, who has the right to carry it out, and also briefly consider the issue of providing such services.
Basic concepts
Audit of outlets is carried out as part of a marketing research and can be represented by many different stages (territory research, retail “retail” audit, product calculation control, monitoring of advertising products, price analysis of competitive enterprises). An audit refers to the implementation of the most sought-after marketing tool from the above list. In this case, this is a way to study how effective sales are at a particular outlet. In most cases, audits are initiated by manufacturers or the retailers themselves.
Exploration of the territory
As a rule, the audit of outlets begins with a study of the territory. That is, information is collected about how many and which outlets operate in a given territory, the assortment of goods and the turnover of the main product groups are studied. Such an audit is conducted if the company has plans to expand the trading network. The study of the territory can be of two types - full (with a survey of all retail outlets in a given territory) and selective (that is, retail outlets are partially explored). A full audit is usually carried out at the first study, when they do not yet have any information about this territory. The plan and audit program should be carefully thought out.
Selective research
A sample study is carried out in order to clarify any data. Properly conducted research of the territory can save a lot of time, effort and financial resources, as well as carefully plan the strategy and tactics of the development of outlets. The study of the territory itself is a very convenient tool and can be carried out not only at the initial stage, but also as a source of additional information during the work. In this way, it is possible to evaluate the distribution levels of products in a given territory, determine the patency of outlets, determine the socio-demographic component of customers, establish the presence or absence of certain goods, monitor the activities of employees, monitor prices, evaluate the effectiveness of promotions, and study the activity of competitors.
What is indicated in the report?
As a result of the research, the customer is usually provided with a report containing the following information:
- legal information (names of organizations, names of owners, addresses, contacts, etc.);
- A full calculation of the types and categories of outlets;
- analysis in terms of the location of shops and trade pavilions;
- information about the time of work;
- information about the premises in which the outlets are located, as well as equipment;
- detailed information about the assortment of goods;
- information on trade and financial indicators.
A sample sales outlet audit form is provided below.
Retail retail
Retail retail or retail audit in the framework of a trade audit is usually carried out with the aim of comprehensively examining the product range, its price, general representation in retail outlets, the quality of employees, as well as pricing policy. This type of research is in demand, because it allows you to track and control several factors that affect purchasing power. The audit is carried out both by the company’s own forces and by using specialized agencies.
Why is the audit conducted?
The data obtained during the audit of outlets are used in order to, after analyzing them, obtain the following information:
- sales in competitive companies and generally in the market;
- volume and market share of a particular product and manufacturer;
- presence on the market of free niches;
- effectiveness of company positioning;
- the amount of profit from product sales;
- emerging trends across the entire market, the level of regional demand;
- other cost factors that affect pricing.
The data obtained allows us to better understand the features of the selected market segment, which makes it possible to more correctly formulate the product range and plan the prospects for the development of retail trade. Competent auditors will first of all begin to study their market share, analyze current prices, promotion channels, and applied marketing techniques. As a result, it may turn out that the problem is in the product itself, an avalanche-like jump in prices in the market or the merchandisers did not work. With the help of an audit, it is possible to identify new market segments, outline the prospects for the introduction of new products, and assess the expected benefits. All this enables the company management to broaden their horizons, which in turn brings dividends in the competition.
Information Collection Methods
A sales accountant can obtain data using several methods. The first method is the “field” method, which consists in collecting data directly at the point of sale, using a telephone conversation, through the analysis of information posted on the website or through a secret purchase. The second way is a “desk-top” study, in which information is collected from external sources, and at the same time, statistical data, information from industry associations, and data from market experts are available. Often, both methods are used together to obtain a more accurate picture. Many companies are involved in providing audit services.
Data collection can be carried out using the services of audit agencies. They, in turn, can use such a tool as a "mystery shopper." The work of mystery shoppers lies in the fact that they carry out a check on the work of an outlet under the guise of ordinary buyers. This allows you to accurately assess the work of the staff, the quality of customer service, as well as conduct a check for compliance with all necessary standards. Thus, the audit may be secret, or may be involving a full-time supervisor or employee of an audit firm. Almost all modern agencies practice the use of advanced technologies with the provision of photo reports to the client.
Periodicity
The frequency of audit in retail is also different, depending on the objectives pursued by company management. Of course, for conducting audits, it is necessary to choose a trusted agency and carefully select effective tools.Indeed, the final result that the company will use to develop a further development strategy depends on the chosen methods and the audit itself.
