Any company producing FMCG products faces the problem of finding information about the market as a whole and about its competitors. In the absence of this information, the actions of a company operating on the FMCG market cannot be adequate to the conditions of the external environment.
One of the main sources of information of this kind is the audit of the retail trade. Retail monitoring allows you to receive information on all elements of the marketing mix and the degree of their impact on the consumer.
With the help of the information obtained through such research, a company can plan its future activities, be one step ahead of its competitors, which is very important in the dynamically changing conditions of modern competition. Therefore, for manufacturers and large wholesalers, a retail audit is necessary.
Carrying out a retail audit on your own is too expensive and requires significant management efforts, therefore it is traditionally ordered from retail audit companies in India.
“A retail audit (retail audit) is a regular survey carried out in retail outlets. The study is based on the collection of data on prices, assortment, stocks, sales, and the availability of promotional materials for each studied product category in the outlets included in the sample.
The audit of retail trade is an effective tool for monitoring changes in the company’s position on the market and the activities of competitors, which allows you to develop options for solving the company’s problems related to the marketing mix.
The result is a set of indicators describing the market situation in the region/city where the study was conducted. The constant structure and composition of the sample make it possible to compare data over time.
The information obtained provides an information base for making decisions about the company ‘s further actions in the market.
Benefits of conducting an audit
- Know in detail the accounting returns of the organization
- Make an approach with preventive and corrective actions
- Proposes continuous improvements in company processes
- Detects latent problems that can be aggravated
- Find the weaknesses and threats of the company
- Contributes to improving internal communication
- Identify the risks of the company
- Generates transparency in expenses
- Prevents possible fraud and errors
- Provide improvements to the organization
The task of a trade audit is to analyze the market to develop a subsequent product promotion strategy. Retail audit is a market analysis that allows you to properly organize the sale of goods in the future. It includes the study of the following parameters:
- Location of points of sale
- Prices and assortment
- Customer needs and behavior
The approach to conducting a retail audit must be thoughtful and personalized. This allows you to take into account the specifics of your business and make your research effective. Retail audit companies act according to the following scheme:
- The choice of goals and type of research (necessary indicators for analysis, methods of data collection)
- Sampling (selection of stores for audit, geography of research)
- Coordination with the customer of documents for verification (data collection forms, reporting forms, forms, letters of permission)
- Working with auditors (recruitment, training)
- Data collection (departure of specialists to stores)
- Checking results
- Analysis of the results and preparation of the final report
Internal audit companies in India carefully prepare for each audit and plan all its stages, which ensures the successful achievement of the set goals.