Do we perform well? Building the position of brands in retail outlets
Technical University Ostrava, Czech Republic
Despite the development of online marketing the retail outlets play the key role for winning customers. There are two main approaches to retailer analysis. The first approach is based on the view that retailers are competitors; namely, that retail chains compare their selling performance, measure price indices of assortment and assess the allocation of outlets in comparison with competitors. The second approach presents retailers as customers and uses the manufacturer's view on the retail market. The second approach will be discussed in this contribution.
“Do we perform well?” is a common question of trade (business or area sales) managers who are responsible for building the brand position in the retail outlets. Managers are normally provided with the retail indicators of company performance (numeric distribution, weighted distribution, sales share) that are quantitative by nature. Quantitative data are supplied from syndicated standardized research products (e.g. ACNielsen) and enable assessment of the competitive position and market share development. This view is rather simplified because it answers two main questions: what is the retail market coverage, measured by numeric and weighted distribution, and what is the company competitiveness in retail outlets, measured by sale share.