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COEX 2007 Orlando, FL
Chief Industry Analyst, Marshal Cohen, and President, Foodservice, Dave Jenkins, speaking
Event Web site March 6-7, 2007
Digital Imaging Marketing Association (DIMA) Conference 2007 Las Vegas, NV
Senior Imaging Analyst, Liz Cutting, speaking
Event Web site March 11 - 13, 2007
International Home & Housewares Show Chicago, IL
International Housewares Association
Event Web site
Insights Mission
HomeMarket Level Information
Market Level Information - Helping Consumer Technology Companies Get Local
NPD’s new capability gives retailers and manufacturers the ability to analyze data based on geographic parameters such as state, region, census DMA, MSA, or custom-defined retailer and/or manufacturer trading areas.
With a more granular view, manufacturers and retailers can assess the variances between markets and gain a further understanding of how consumer purchase behavior responds to different marketing and sales strategies.
Retailer Value
Retailers can evaluate the brands and items currently being carried in specific markets to determine distribution and pricing variances against market level competition; retailers can also assess product performance and evaluate their assortment and distribution versus the market they are assessing.
HDTV Monitors: Market level data allows retailers to identify markets in which their share of a product segment underperforms versus their national or regional share. Corrective action can then be taken in their stores within the under-performing markets. For example, a regional retailer may be stocking a greater assortment of a manufacturer’s items, which adds to the consumer’s variety of selection in an important segment. (Figure 1)
The retailer started reviewing brand performance for its manufacturer partners and learned that Brand “A” has a significantly higher share in the Charlotte market, 12.1, than its national share of 8.8, and has increased its share in Charlotte by 6.6 points versus the prior period. (Figure 2)
The retailer reviewed the top selling items for Brand “A” and recognized that it was not stocking two items, both of which had a higher share in Charlotte than its national average. (Figure 3)
These items are driving competitive retailer revenues and should be considered potential items to add to its assortment. The retailer can now take the next step by contacting manufacturer “A” to discuss stocking new items.
Manufacturer Value
Manufacturers want to know where their products are selling best and why, while retailers want to have the best-selling products on their shelves. Market level information gives manufacturers the capability to develop and execute marketing and sales strategies and deploy resources most effectively on a market-by-market basis.
Now that manufacturers can focus on specific markets, they can evaluate trends in distribution, sales per store selling, pricing levels, dollar and unit shares, and other key metrics. This insight will allow manufacturers to assess why certain products are selling better in specific areas and determine what may be contributing to the gains.
For example, manufacturer “A”, who is seeking to gain distribution and grow market share, decided to evaluate high-performing markets based on share and share growth to leverage movement in other markets. (Figure 4)
The manufacturer of Brand “A” knew that a regional retailer was having great success with three new models in the Southeast, where its stores are highly concentrated. The manufacturer also recognized that a national retailer was not stocking two of its high-performing items.
Until now, the manufacturer only had a national view of product performance based on consumption, but is now empowered to show the national retailer how it can be more competitive in markets, such as Charlotte, by adjusting its market level distribution to include those two high-performing items.
Utilizing the “dollars per store selling” measure, Brand “A” can compare its performance where it is actually in distribution against its competitors. In the chart , both of Brand “A’s” products have greater sales dollars per store selling than the two leading competitors' items that are being carried by the national retailer. (Figure 5)
By demonstrating its superior market share in Charlotte and other markets, while drilling down to the underlying measures, Brand “A” can help the national retailer understand how it can be more
competitive in local markets by adopting different assortments.
In this case, the manufacturer of Brand “A” was already prepared with their market level analysis when the national retailer called to discuss having a meeting to collaborate on underperforming markets as yielded by reviewing NPD’s market level information.
For more information about NPD’s new market level capabilities, call 866-444-1411 or e-mail contactnpd@npd.com.
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