Study changes in demand or how to find growth points in the new realities
Study changes in demand or how to find growth points in the new realities
For years, the same audience has been visiting the stores of the chain, and the assortment, it seems, satisfies its needs quite well. But what if the target audience starts to change, and its preferences too? And there are many reasons for that. The first thing that comes to mind is population migration. It is not easy to assess and calculate the impact of these changes, but businesses need to act and respond quickly. Let's take a look at how consulting and analytics professionals help retailers find growth points in the face of changing demand and new challenges.
What opportunities does the study of changes in demand open up?
In the modern world, events in one or two countries become a catalyst for global processes. The sinking of a tanker in the Suez Canal, COVID-2019, hostilities in the center of Europe - all these events inevitably lead to changes in established logistics chains and retail business processes. A big challenge for retail is the change in demand under the influence of new factors.
The preferences and needs of visitors are changing for various reasons: increasing food prices, sanctions restrictions, disruption of economic ties, changing suppliers, and simply the confusion of buyers in the face of the unknown tomorrow.
Business consulting specialists help the retailer find the basis for rational decisions. And they do it with the help of mathematical methods and analytics.
Experts conduct research and help retailers determine:
- how the DT (decision tree) has changed in the categories, and how the buyer makes a purchase decision;
- how does the transferable demand go: what product did a significant group of buyers switches from;
- which segments should be developed more quickly and look for new/additional suppliers;
- where the influence of the supply chain has a greater impact on the demand and availability of goods;
- how migration affects the change in demand: because people, when moving, are not ready to radically change their preferences and will look for the usual buckwheat or cottage cheese in European stores.
The situation is changing dynamically. The work of C4R specialists is to analyze data that gives the retailer an objective understanding of the needs of store visitors at the current time and the dynamics of demand changes. And what to do with this data?
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What does demand analysis show?
The obtained results allow the management of the retail network to make strategic decisions based on the results of the analysis of demand changes and digitized patterns. As a result, the retail network can focus on those groups of goods that in a given situation most influence and respond to demand.
- Based on the results of the analytics, experts provide a ready-made layout by category, a comparison of what the decision tree was and what it has become.
- Based on the results of the retail audit, one can assess the problem with sales due to the lack of goods.
- Auditing and assessing changes in demand helps to identify needs arising from the migration of people. Excessive demand completely crosses out forecast indicators, and the retailer needs to understand that goods will not be sold as predicted in advance.
- With the help of services, specialists will be able to identify stores where customers have appeared with new sets of goods in check.
As a result, retailers receive conclusions that will contain information: where demand has changed, where it has remained the same, which product categories are sensitive, what the new LPR is, and in which stores there is a drastic change in demand.
Would you like to learn how Num8erz analytical tools work on case studies of large retailers and manufacturers? Watch the presentation on how Num8erz.InsightsPanel helps to analyze the switching of demand from a well-known juice brand and the launch of a new beverage. Click to download the presentation! If you have any questions, please write to [email protected] or fill out the consultation request form.
Apply the information correctly!
Based on the information received, specialists can prepare a matrix that will reflect in percentage terms the main areas that a category manager should pay attention to when working with an assortment:
- where to look for new suppliers;
- in which categories to look for new products;
- which products from those that were not previously presented should be developed.
In fact, this is a guide to action that will increase retail sales based on an analysis of changes in demand in the network.
For all questions about audit and consulting services in retail, as well as the implementation of IT solutions for business automation, write to [email protected] or fill out the form to order a callback from our consultants.
The author of the article is Andrey Shevchuk,
Head of Business Consulting C4R
