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    • 10/02/17
    • Retail
    • Technology
    • Promotion and Causal Retail
    • Global
    • English

    How to attract the maximum share of Black Friday shoppers

    With Black Friday less than two months away, practically every retailer out there will be planning campaigns to pull in the maximum share of this bumper period for consumer spending.

    And indeed, Black Friday is a huge opportunity in the retailer’s calendar. According to our weekly point-of-sales tracking data for technical consumer goods, in some countries, such as the UK, Black Friday week attracts more consumer spend than the week before Christmas1. And in other countries, like Spain, Italy, France and Germany, this is also true for many product groups such as television and mobile computing.

    The week running up to Black Friday also generates considerably more sales than an average trading week. In Spain, week 47 in 2016 accounted for 5.2% of the overall annual sales – more than twice the average figure of 1.9% (100%/52 weeks, see table below).

    In terms of bestselling product groups it was the “usual suspects” which commanded the biggest share in terms of sales value in the above mentioned countries  – namely, mobile computers, PTVs, and smart/mobile phones.

    Sales value share in % of Black Friday week 2016 compared to full year

     

    Promotions can make or break your Black Friday sales

    On Black Friday, shoppers are eager to spend, but they are also waiting for deals. Promotions are effective sales drivers all year round, but some are more effective than others at influencing shoppers’ decisions.

    This is illustrated in our FutureBuy 2017 data, where more than half of all shoppers of technical consumer goods (54%) rate price comparison/discount websites as “extremely” or “very” important in their shopping decisions, and just under half (41%) say the same of promotional leaflets.

    Black Friday is therefore one of the most important promotional weeks of the year. For last year, our Promotion and Causal Retail Tracking shows that across the five countries mentioned above, 2% more promotions were run for smartphones in November than in December. For TVs it was even 9% more. In Germany, for example, the number of advertising flyers promoting TVs was 15% higher in November.

    Defining the right price

    And, of course, Black Friday is “high season” for any competitive pricing activity. Looking across the three biggest European retail markets – Germany, France and UK – our online pricing data shows that twice as many products had price changes on Black Friday 2016 versus the same, regular Friday a month before. Also, the number of products that had multiple price changes increased.

    However trading behavior across these markets varied: the UK had more of a focus on the Black Friday week with three times the level of pricing activity in that week versus a regular week. In Germany, the number of products that had prices changes wasn’t much different from normal, although there was an increase in the number of price changes on the very day.

    Black Friday price changing behavior

     

    With so much competitive activity going on, retailers and manufacturers need to stand out in an extremely cluttered environment. It is vital to get your promotion activity and pricing perfectly judged, as Black Friday is not the time for experiments.

    As a retailer you need to identify which retail promotions are most effective with your shoppers. How are your products priced versus your competitors? Are you advertising on the right channel with the right price?

    And, as a manufacturer, you need to look at: Are you partnering with the right retailers? Are you investing the right amount in trade marketing?

    Make Black Friday a success with store-level data on promotions and pricing

    Black Friday is a vast opportunity – but presented over a very short window, so there is very little time to ‘test and adjust’ during the show. Pulling in your maximum share of the spend over this time depends on having timely data allowing you to make the correct decision and react fast on the most effective activities for your specific product categories.

    Our dedicated GfK Promotion and Casual Retail team shows retailers what promotions are most effective for your specific shoppers, and how you are currently performing in your promotional share and pricing in relation to your competitors. With this live tracking data, you can instantly see if your market performance is changing, and react immediately to adjust your promotional strategy. And manufacturers can see exactly how retailers are promoting and pricing their products, to evaluate effectiveness and see where and how much to invest in the future.

    Try it out now!

    Make use of our Black Friday promotion and get two weeks of promotion and pricing tracking at a special price.

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    Sources: GfK Point of Sales Tracking (weekly panels), GfK Promotion and Causal Retail, GfK FutureBuy 2017 (online survey with 38,000 consumers in 35 countries)

    1 Data based on full weekly panel per country, Black Friday 2016: week 47 (20 – 26 November), week before Christmas 2016: week 51 (18 – 24 December)

    • 08/24/17
    • Online Pricing Intelligence
    • Promotion and Causal Retail
    • Global
    • English

    The first three steps to getting your online pricing decisions right

    With saving money the number one reason that consumers shop online, retailers need to ensure they maintain the right price position. This involves a careful balancing act if you are to stimulate sales without any loss of margin. But you can manage this successfully if you get six core activities right. We take a quick look at the first three of those activities here…

    One: Track the right things, not everything

    You don’t need to track all of your competitors’ pricing and promotions activities to meet your pricing objectives. It is far better to focus your resources on tracking those pricing and promotions activities that can have the greatest impact on the performance of your business.

    Two: Benchmark your pricing against the market

    Pricing activity may happen at a product level, but tracking the price position of your full product range across categories using a pricing index is important. For this will enable you to ensure your price position compares favorably to the rest of the market. By evaluating pricing at both a product and category level, you can identify any price shifts and their potential influence on your price position early.

    Three: Make sure you are basing your pricing decisions on data you can trust

    Ensuring the prices of your specified products are benchmarked against all relevant competitors is a real challenge. Particularly when product descriptions and attributes can vary significantly across retailers. The accuracy of this matching process is key to the success of any pricing strategy. With data you can trust, you can better direct pricing decisions and negotiate with your suppliers to drive immediate value for your business.

    Connected Consumers’ ability to check prices whenever and wherever they choose using different devices has made it difficult for retailers to effectively manage their online pricing. To remain competitive, you must identify those pricing and promotions activities of your competitors to track. You need to examine your price position in the context of the market. You must also ensure you are basing your pricing decisions on the right data. But pricing decisions don’t simply end there, there are several other factors to consider that can drive your bottom line which we will explore further in our white paper.

    The positive impact on your revenue and profit of making the right pricing decisions can far outweigh your investment in the processes and services that support these decisions. The winners in the new retail battleground will be those that utilize pricing intelligence to get their online price position right.

     

     

     

     

     

     

     

     

     

     

     

     

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  • Whitepaper: Six steps to getting your online pricing right
    • 08/22/17
    • Retail
    • Technology
    • Promotion and Causal Retail
    • Global
    • English

    Whitepaper: Six steps to getting your online pricing right

    Download our white paper in which we’ve identified six core activities that you need to master in order to make the right pricing decisions.

  • Whitepaper: Six steps to getting your online pricing right
    • 08/22/17
    • Retail
    • Technology
    • Promotion and Causal Retail
    • Greece
    • English

    Whitepaper: Six steps to getting your online pricing right

    Download our white paper in which we’ve identified six core activities that you need to master in order to make the right pricing decisions.

  • Whitepaper: Six steps to getting your online pricing right
    • 08/22/17
    • Retail
    • Technology
    • Promotion and Causal Retail
    • South Africa
    • English

    Whitepaper: Six steps to getting your online pricing right

    Download our white paper in which we’ve identified six core activities that you need to master in order to make the right pricing decisions.

  • Whitepaper: Six steps to getting your online pricing right
    • 08/22/17
    • Retail
    • Technology
    • Promotion and Causal Retail
    • United Kingdom
    • English

    Whitepaper: Six steps to getting your online pricing right

    Download our white paper in which we’ve identified six core activities that you need to master in order to make the right pricing decisions.

  • Combating price erosion in the consumer electronics market
    • 07/19/17
    • Technology
    • Promotion and Causal Retail
    • Global
    • English

    Combating price erosion in the consumer electronics market

    We give a major multinational manufacturer daily visibility into retail pricing for its products so it can enhance its pricing policy.

    • 06/13/17
    • Retail
    • Online Pricing Intelligence
    • Promotion and Causal Retail
    • Global
    • English

    Managing price erosion in the omnichannel shopping environment

    While eroding prices of technical consumer goods may excite the increasingly savvy and deal seeking Connected Consumer, they can be a big problem for product manufacturers and their retailers.

    Lower prices mean lower margins, and in today’s evolving omnichannel environment, it’s important to understand which promotions with which retailers bring back the highest ROI, as well as the impact retail promotions have on sales and margin.

    For example, in the durable goods market, a 10% cut in price could mean a 25 – 30% loss in margin for the retailer.  This is a big challenge if manufacturers have hundreds or even thousands of units in stores and distribution centers.

    Often a price drop starts with a single retailer, which can be due to a consumer price promise, pricing policies, or pressure from their competitors.  It’s important for the manufacturer to be able to spot price erosion early and act quickly before the price becomes set at that level.

    Does offline pricing on promotions drive down online pricing?

    It is easy to assume that online retail activity is responsible for driving pricing down since online sales continue to draw consumers away from traditional brick and mortar stores, and there are countless examples everyday of where this is happening, but is this the full story?

    In the below example which shows price erosion after the launch of a new TV set, we see that indeed an online retailer initiates the first drop (green circle), however, this is not the complete picture. Looking at the development of online and offline retailers, a far bigger impact on price was a promotion flyer published by an offline retailer.

     

    To get a complete picture of the market and how to react, brands and retailers benefit from being able to see both offline and online pricing so that they react to the correct market activity.

    In many markets, particularly larger geographical territories, the influence of offline marketing and in-store pricing is significant.  In these markets, there are regionally focused retailers and managers within larger retailer groups that have more pricing autonomy.  This leads to local pricing decisions that can drive the price below the online retailers serving the whole market with one single price position.

    Identifying this typically short-term behavior can reduce price-following activity which increases margins for retailers and better supports the manufacturers’ price position.

    Slowing down price erosion

    Combining daily online and offline promotional pricing can provide insight into the impact of offline activity and online pricing.  By aligning these two data sets with market data you can get unique insight to support better price and promotion decisions.

    While the objectives of at-launch and in-market pricing can vary (to maximize profit, gain market share or maximize penetration, minimize cannibalization within the portfolio, etc.), retailers and/or manufacturers can manage price erosion even more confidently if, additionally to knowing which price the product was offered at, they also know what consumers are willing to pay for this product, and where the optimal price point is for it to meet its objective.

    Insights on consumers’ budget restrictions and price perceptions are crucial to securely determine and steer pricing along the product life cycle.  Virtual store experiments with consumers are an effective way to quickly and confidently determine the price-revenue-profit triangle at different price points within the competitive set, and give manufacturers more confidence in their price decisions, and ultimately optimize the ROI of each SKU.

    Ultimately, price erosion is part of the product lifecycle, but slowing down unwanted and unexpected price drops can have a big, positive impact on margins for both manufacturers and retailers.

    To find out more on how combined online and offline price and promotion can help your sales please contact Adrian.Hobbs@gfk.com.

     

     

     

     

     

     

     

     

     

     

     

     

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  • Bringing transparency to telecom tariffs
    • 06/02/17
    • Technology
    • Promotion and Causal Retail
    • Global
    • English

    Bringing transparency to telecom tariffs

    We provide a market leader in the German telecom market with real-time insight into competitors’ pricing strategies.

    • 05/30/17
    • Retail
    • Promotion and Causal Retail
    • Global
    • English

    Step this way to find out if you’re getting your fair share of manufacturer investment

    As a retailer, you are to manufacturers what Ginger Rogers was to Fred Astaire: a principal partner. That’s why they invest with you to help promote their products across your channels – online, in-store and in print. But how can you be sure that you are perfectly in step with each other, and you’re receiving a fair share of their trade marketing budget for the activities you execute for them?

    Intelligence you can leverage in conversations with manufacturers

    Let’s assume, for example, that you sell 20% of all smart TVs in a market. So, in theory, you should be able to command a proportion of the biggest TV manufacturer’s trade marketing budget for its new model that’s relative to your share of the market.

    From a manufacturer’s point of view, however, they will be looking not only at the retailer with the greatest share of sales now, but also the one with the most potential to gain market share in the future. If they can see that a particular retailer has made gains and the indications are that they will continue to do so, they could move the lion’s share of their trade marketing budget to this contender.

    But this is only part of a manufacturer’s consideration set. They also want to know that their campaigns are being executed as agreed with their retail partners. So, if you know how you are performing when it comes to delivering different campaign elements across channels, and how this compares to your key competitors’ performance, you will be in a stronger position at the negotiating table with manufacturers. This information combined with your sales data provides you with intelligence that you can leverage in conversations with manufacturers about their level of investment with you.

    Determining the level of investment you should be able to command from manufacturers

    We can help you track how retailers are promoting products and their selling points on their websites, in-store, at the point of sale and in their advertising. Based on this information and your sales figures, we can conduct a fair share analysis to determine what level of investment you should be able to command from manufacturers. If you are delivering the agreed trade marketing campaign, our data will show this. It will also provide evidence of which elements of the campaign work and which don’t, as well as what promotions your competitors are running. This level of transparency relieves tensions on both sides, and ensures that you and your manufacturer partners are in perfect harmony when making your agreements.

    Contact me at Karsten.holdorf@gfk.com to find out how we can help you to get your fair share of your partners’ promotional investments.

     

     

     

     

     

     

     

     

     

     

     

     

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    • 05/23/17
    • Retail
    • Promotion and Causal Retail
    • Global
    • English

    Track the execution of launch campaigns to ensure they achieve lift off

    As a manufacturer, you’ll know that the launch phase of a new product is absolutely critical. As our recent POS Analytics study in Japan shows, product life cycles can be short. As much as 90% of the overall sales of mobile PCs and smartphones in this market are delivered in less than 10 months of their launch1. You have just a small window of opportunity to make sure your product secures its target share of market and sales against the competition. You will therefore invest heavily in a sophisticated launch campaign with key retail partners to promote your product. But how can you be sure your trade marketing campaigns are being executed as agreed?

    Monitor key retail partners’ performance to get the maximum ROI

    Let’s look at the major smartphone manufacturers. Three have recently launched new generation flagship models. They will want to know how the launch promotions they have designed and agreed with their various retailer partners are being implemented. Is their product achieving maximum visibility across retailers’ channels? Are they using the right video online? How is the product positioned in-store? How is it featured in their seasonal TV advertising?

    Often trade marketing campaigns focus on promoting a particular technical feature or benefit, like an infinity screen, or a sophisticated camera that can take high-end pictures for posting on social media. If you are running a feature-led campaign, you will want to ensure that retailers are promoting the relevant selling point to consumers across touchpoints.

    Determine how retailers are implementing the campaigns you’ve devised for them

    You should monitor online, in-store and print advertising to determine how retailers are implementing the campaigns you’ve devised for them. You will know if your product features prominently in their advertising and promotional materials at the point of sale, if it is reachable within five clicks on their website and whether it appears in one of the “golden locations” (i.e. the front entrance of end of aisle, etc.) in their stores. Similarly, you can monitor the execution of your competitor’s campaigns.

    By combining intelligence on the execution of different elements of your trade campaigns by retailers and their sales data, you can determine the success of your campaigns. More importantly, you can align your efforts and investment – in different channels, campaign elements and retail partners – with your results. This level of transparency about your campaigns and retail partners’ performance is invaluable when it comes to agreeing campaigns and your level of investment with retailers.

    Contact me at Karsten.holdorf@gfk.com to find out how we can help you to optimize your trade promotion management.

    1 Our recent GfK POS Analytics studies of durable goods in Asia provide evidence of increasingly short product life cycles. In Japan, for example, 90% of the overall sales of mobile PCs and smartphones are achieved in less than 10 months. However, selling the last 10% of these products takes longer than the entire time needed to sell the first 90%, despite the best price incentives being employed for the final 10%.

     

     

     

     

     

     

     

     

     

     

     

     

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  • Peter Feld joins GfK SE as new CEO
    • 03/10/17
    • Financial Services
    • Health
    • Consumer Health
    • Optics and Acoustics
    • Media and Entertainment
    • Public Services
    • Retail
    • Technology
    • Travel and Hospitality
    • Automotive
    • Consumer Goods
    • Media Measurement
    • Brand and Customer Experience
    • Consumer Panels
    • Digital Market Intelligence
    • Social Media Intelligence Center
    • Market Opportunities and Innovation
    • Mystery Shopping
    • Promotion and Causal Retail
    • Point of Sales Tracking
    • Point of Sales Analytics
    • Shopper
    • Trends and Forecasting
    • User Experience (UX)
    • United States
    • English

    Peter Feld joins GfK SE as new CEO

    The Supervisory Board of GfK SE has today appointed Peter Feld (51) as new Chief Executive Officer and Management Board member effective March 15, 2017.

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