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The Rise and Rise of Retail Research Key Account Data | October 9 2001 |
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Key Account Data (the release of data by individual retailers) has brought about a recent and major transformation within the world of retail market research. However, a recent paper from ACNielsen in the UK shows that researchers are only now really beginning to tap into this data's true potential. Within this important new study, ACNielsen describes how it is now possible for FMCG manufacturers to assess performance nationally as well as by distribution channel. This analysis can cover the whole spectrum of retail outlets, from grocery, CTNs and off licences to forecourts and so on. The data can also cover sales detail down to individual retailer within these different distribution channels. This ability to assess performance within a retailer, both for individual brands and against the broader category, means that researchers can now understand some of the key drivers of sales performance. They are also now able to benchmark outlets against the whole channel. This aside, ACNielsen believes that the major benefit of Key Account Data lies in the dialogue that is now becoming possible between retailer and supplier on the basis of hard facts and figures. Consequently, the data has already had far reaching implications, particularly in the sphere of strategic and tactical planning by both suppliers and retailers. In effect, individual retailers can now be readily and fully assessed for what they are - each a separate channel to market. The data clearly shows, for example, which promotions work best in which retailer. It might well be that price cuts are the best mechanic in one retailer, multi-buys in another, and an extra free in a third. In addition, ranging, pricing, new product launches, and pack types/sizes have all become important strategic and tactical considerations benefiting from the data. This is particularly the case as retailers continue to aggressively develop their store formats and product range. Tesco, for example, is no longer just a multiple grocer, carrying as it does a spread of differing product ranges across its varying stores be it an Extra, Metro or an Express, or indeed its Tesco.com internet shopping service. ACNielsen has concluded, therefore, that the diversification of stock possible through the interpretation of Key Account Data will continue apace. It is more than likely to expand across all of today's FMCG retailers, facilitating new and important strategic thinking amongst the entire community. Simple printable version of this article. Email this article to a friend.
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