How sales take place at each retail outlet and what influence prices, merchandising, advertising and POS materials, and the activity of competitors have on them- such questions are relevant today for many suppliers and manufacturers of goods. An important tool in measuring this kind of data is Retail audit or Point of Sale Audit.
POS Audit or Retail Audit is a type of marketing research aimed at a comprehensive analysis of a POS. According to some experts, using this technology, trade can be increased by 30% within three months.
With the help of a trade audit, the following parameters of a point of sale can be examined:
- Actual availability of goods,
- Its stock and prices,
- Display of goods,
- Compliance with merchandising standards,
- Availability and availability of necessary POS and advertising materials,
- Compliance with standards for registration of a point of sale,
- Analysis of prices and advertising activity of competitors
In most cases, this type of research is of interest to retail chains, as well as to manufacturers and suppliers of goods, since they do not have a complete picture of how well the goods are presented in the store, whether the display standards are followed and what price the seller has set for it, you can demand a retail audit by contacting retail audit companies.
TASKS THAT RETAIL AUDIT CAN SOLVE
- Evaluation of the representation and variety of goods in stores, the profitability of its location, the literacy of the placement of advertising and POS materials, the range of prices for products in various retail outlets, compliance with the design standards of the outlet;
- Control of staff work: dealers, sales representatives, consultants, merchandisers;
- Assessment and formation of the company’s pricing and assortment policy;
- Revealing the marketing activity of competitors: pricing policy, quality of display, volume of placement of advertising materials, promotions;
- Identification of problem areas (incomplete assortment, lack of competent layout, ineffective placement of advertising materials, irregular supply of goods, etc.) and development of sound recommendations for their elimination;
Objectives of trade audit of organizations
Store audits target two main customer groups:
- Manufacturers: they control the merchandising quality of their products through trade audit.
- Retailers: organize a trade audit to monitor the work of employees and find out the necessary information about competitors.
In both cases, the retail audit companies in India remain engaged in the formation of the exact characteristics of the retail facility according to target criteria. It can be:
- Merchandising. The layout of the goods is evaluated according to the approved requirements.
- Advertising. Control of the presence and demonstration of materials in the store.
- Availability and stock of goods. Does the actual number of goods in the display correspond to the declared one?
- Range. Assess customer demand with smart analytics.
- Storage conditions. With the help of a trade audit, it is easy to control the temperature regime in freezers and refrigerators.
- Staff work. The audit allows you to check the employees of retail outlets for competence and other qualities required in trade.
- Pricing, advertising policy. An audit allows you to research stocks, offers, compare prices with competitors.
- Other points that are relevant to your business. The most popular is a comprehensive retail audit for researching all aspects of your facility’s operation.