For disaggregate (customer-level) analysis, the tools and techniques used to study consumer panels are also applicable for retail analytics. The focus of analysis however shifts from brands to outlets.
The range of analysis includes:
The case example, “Evaluation of opening of new petrol station”, which comes later in this chapter, illustrates the application of some of these analysis.
Note that data confined to the retailer’s own transactions, as is the case with loyalty panels, curtails the scope of the analysis. The analysis is then restricted in context to the retailer’s customers and their transactions at the retailer’s outlets.
For example, penetration would be redefined as proportion of loyalty card holders. The analysis of gain–loss between stores will not be able to capture switching between competing chains. Forecasts would be confined within the boundaries of the retail chain. And metrics such as loyalty and propensity cannot be computed. Both these measures require an assessment of customers’ transaction across the entire market.
In the FMCG sector, where they are prevalent, consumer panels provide a holistic view of the market and work well for most of the above analysis. They are however expensive to set up and maintain, and sample sizes would tend to be relatively small compared to sales transaction data or loyalty panel data.
Note: To find content on MarketingMind type the acronym ‘MM’ followed by your query into the search bar. For example, if you enter ‘mm consumer analytics’ into Chrome’s search bar, relevant pages from MarketingMind will appear in Google’s result pages.
Marketing has changed. More so in practical terms, and marketing education is lagging.
The fundamental change lies in the application of analytics and research. Every aspect of the marketing mix can be sensed, tracked and measured.
That does not mean that marketers need to become expert statisticians. We don't need to learn to develop marketing mix models or create perceptual maps. But we should be able to understand and interpret them.
MarketingMind helps. But the real challenge lies in developing expertise in the interpretation and the application of market intelligence.
The Destiny market simulator was developed in response to this challenge. Traversing business years within days, it imparts a concentrated dose of analytics-based strategic marketing experiences.
Like fighter pilots, marketers too can be trained with combat simulators that authentically reflect market realities.
But be careful. There are plenty of toys that masquerade as simulators.
Destiny is unique. It is an authentic FMCG (CPG) market simulator that accurately imitates the way consumers shop, and replicates the reports and information that marketers use at leading consumer marketing firms.
While in a classroom setting you are pitted against others, as an independent learner, you get to play against the computer. Either way you learn to implement effective marketing strategies, develop an understanding of what drives store choice and brand choice, and become proficient in the use of market knowledge and financial data for day-to-day business decisions.