Client

A leading retail chain In India

Objective

The key objectives of the study were:

1. Benchmark their product pricing, promotions, and availability against competitors.

2. Assess the working norms and adherence to operational standards in their stores.

3. Deliver weekly insights to help the client evaluate their position and take corrective actions swiftly.

Client Challenges

The client faced intense competition, requiring close monitoring of competitor pricing and competitor promotional tracking. Additionally, they needed to ensure operational efficiency across in-house stores and access timely weekly insights to make prompt, data-driven retail decisions.

Methodology

A dual methodology incorporating a retail benchmarking study and mystery shopping was implemented to meet the client’s objectives:

Benchmarking Study

A SKU performance benchmarking Study was conducted to compare the client's SKUs  with competitors’ offerings across various parameters:

• Conducted weekly audits across 33 stores and 13 cities

• Delivered insights on retail pricing intelligence, promotional strategies, and SKU availability in competitor stores.

• Data Collected:

1. Names of competing brands.

2. The listed price of the product.

3. The actual selling price in stores.

4. Discounts, schemes, and promotional offers.

• Volume of Data: 80-100 articles (SKUs) per shop were benchmarked for accuracy and consistency.

Mystery Audit

This study evaluated the operational standards and performance of in-house stores:

• Audited 36 in-house stores in 9 cities weekly to assess compliance with operational norms and identify areas for improvement.

• Captured critical data on:

1. Availability of 25-50 products in each store.

2. Adherence to operational norms.

3. Product assortment and stock levels.

4. Identification of non-assortment or non-availability issues.

Reporting

A cumulative Excel report was provided weekly, summarizing:

1. Promotions and discounts offered by competitors.

2. Instances of non-assortment or non-availability of products.

3. Comparative pricing insights for client SKUs versus competitors.

Findings

The study revealed several critical insights:

1. Competitive Intelligence:

   • Competitors employed aggressive discounting strategies on certain SKUs to attract customers.

   • Promotions and schemes varied significantly across cities, with urban centers showing higher promotional activity.

   • Certain brands were consistently priced lower than the client’s offerings, impacting price-sensitive segments.

2. Operational Gaps in In-House Stores:

   • Some stores were found to deviate from prescribed operational norms, impacting customer experience.

   • Instances of non-assortment or non-availability of key SKUs were observed, especially in smaller cities.

   • Inconsistent adherence to promotional strategies across in-house stores was noted.

3. Product Performance:

   • Specific SKUs performed better in competitor stores due to pricing and promotional advantages.

   • Discrepancies in the market operating price (MOP) were observed, highlighting areas for competitive price adjustments.

Outcome

The study enabled the client to:

1. Enhance Competitive Positioning:

   • Adjust pricing strategies to remain competitive in key categories.

   • Develop more targeted promotional campaigns based on competitor trends.

2. Improve In-store performance evaluation

   • Address operational inefficiencies and enforce compliance with company standards.

   • Ensure better product assortment and availability across all in-house stores.

3. Data-Driven Decision Making:

   • Weekly reports provided actionable insights to refine strategies and stay ahead in the competitive retail market.

Conclusion

By leveraging a robust benchmarking, competitor pricing analysis and mystery shopping audit approach, the study provided the client with actionable insights to stay competitive and optimize their in-house operations. The weekly tracking ensured timely adjustments to pricing, promotions, and operational strategies, helping the client maintain their market position in a highly competitive landscape.

This case study highlights the importance of continuous monitoring and strategic decision-making in the retail industry to drive success. For Data-driven retail strategy and customized solutions, get in touch with us today!