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Based on the results of the audit of the retail trade, management decisions are made aimed at improving the efficiency of the company. When it is carried out on a regular basis, the company’s turnover will increase by 30% within three months
Retail audits can be performed by both the company’s merchandisers and/or its own sales representatives, who track data on the company’s products in retail chains, as well as retail audit companies in India. However, we suggest you to consult experts for more accurate analysis.
Such an audit of retail trade allows assessing the representation of their own brands in retail chains, and hence the level of distribution, while analyzing it in dynamics.
Developing companies are interested in the audit of retail trade primarily in terms of optimizing the space of the sales area, efficiently working with stocks in the warehouse, and reducing costs.
Companies experiencing problems in business, with the help of a retail audit, restructure warehouse stocks, optimize control over the quality of the retail network, and develop anti-crisis measures.
In turn, retail audit companies helps retail chains in assessing the work of personnel, analyzing the coverage of visitors, so, a retail audit allows you to perform the following tasks:
- To identify trends in the volume of sales;
- To identify differences in consumption in different regions;
- Segment the market and identify niches in it;
- To identify the shares of the main market players;
- To evaluate the impact of changes in the elements of the marketing complex, for example, prices, on the level of sales;
- Determine the level of distribution;
- To identify the role of distribution channels;
- To determine the strengths and weaknesses of the goods presented on the shelf.
The following reasons can be distinguished for the need to conduct a retail audit:
- The ability to plan purchases using data on the volume of sales by types and types of products;
- Effective assortment policy by tracking changes in demand;
- Timely sale of seasonal goods;
- The possibility of adjusting the pricing policy when prices change in the market;
- Timely launch of new products for sale;
- Real-time analysis of the effectiveness of promotions and advertising campaigns;
- Assessment of unrealized opportunities.
Thus, through a retail audit of its products, a company can:
- Evaluate the market as a whole and changes in the volume of its sales;
- To determine the number of players on the market, what positions they occupy, which of them is a competitor;
- To establish the number of brands on the market and their trends;
- To identify the characteristics of the distribution of the company and its main competitors, as well as their changes over a certain period;
- To track the pricing policy of competitors and the effectiveness of changing your own pricing policy.
It should be noted that the cost of audit of a retail trade is influenced by the number of positions, the type of name and the availability of a trading company, including remoteness, etc.