CPR provides information that will allow you to look at your competitors and markets differently. It will help you think "out of the box" and outfox the competition.
You will learn:
Competitive allowances being offered to your customers by your competitors.
Pricing and promotion trends.
Brand, Category and SKU profitability.
Allowances that are offered but applied to the product price. (back end)
Promotion timing of your competitors and the category.
Competitive strategies for EDLP and High/Low pricing.
Planogramming with actual dead nets.
Cost Analysis and forecasting for trade pricing.
Key information for customer negotiating sessions.
Key information for competitive analysis within your organization.
To Focus on the First Sale.
More meaningful negotiation between Sales and Marketing relative to trade pricing and promotion.
By using CPR data with other syndicated data you will get an accurate picture of what your competitors are doing and what is effective in each category.
Our clients have told us that they use CPR information in these ways either by itself or in conjunction with other syndicated data.
I. Planograms
- Retail prices from accounts.
- Dead nets from CPR.
- Determine retailer margins and profitability.
- Develop formula that includes sales data and profitability.
- Example: # of units sold multiplied by profit per unit.
- Determine space allocation based upon retailer parameter.
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II. Competitive Strategy for Deal & Contract Pricing
- Obtain contract price from CPR as indicated by comment and dead net price.
- Obtain net or dead net from CPR on "deals".
- Compare differences percent-wise and look at pattern over categories or by brand.
- Determine formula used by competitors.
III. Determine Pricing Trends
- Obtain pricing by SKU for competitive brands over period of time from CPR.
- Obtain list and dead nets for individual sku's and determine where deeper or shorter cuts are made from CPR.
- Compare discounts and prices relative to the time of year.
- Answer the questions relative to the amount of discount and the time of the year or other consumer promotion activities.
IV. Timing of Promotions For Competitors
- Develop a timeline to compare competitor's timetable for deals.
- Determine when deeper discounts are offered.
- Look for non-promotion periods to determine if there is a timing opportunity.
- Find a period where competitors do not offer deals and promote them if feasible.
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V. Determine Brand and SKU Profitability
- Obtain "real dead nets" from CPR.
- Obtain retail from customer.
- Obtain movement from customer.
- Determine gross and net profit using real world" dead nets.
- Compare to your brands and look for opportunities to either lower allowances or if you must raise them.
VI. Provide Key Information for Negotiating Sessions
- Negotiations occur within clients and with the trade.
- Internally sales, marketing and finance can determine competitive discounts and make more accurate decisions relative to number of deals, timing and discounts.
- Negotiations with the trade will be enhanced by knowledge of competitors' pricing and discounts as well as timing.
- Sku's with EDLP will indicate which are being promoted with extra funds.
- Determine what the range of offers being made by a competitor to a customer. Every manufacturer works within a set parameter as to their allowances. Much time the discounts are consistent but are applied differently by your customer.
VII. Determine What Allowances Your Competitors Are Offering To Your Customers
- Analyze key competitor promotions and pricing through detail and special reports.
- CPR allows you to see EDLP and additional allowances offered that might apply to price.
- CPR allows you to see those allowances that are not applied to price.
- Review EDLP/contract competitors to determine additional allowances offered either as a bill back or PM (promotion Money such as MDF, Accruals, etc).
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VIII. What If Scenarios
- Obtain your own deals, allowances and timing from CPR (one source) and sales data.
- Determine what methods are most effective.
- By looking at competitor deals and syndicated movement data you can determine which deals work best for your competitors.
- Compare movement data to trade promotion timing and amount of allowances to determine effectiveness.
IX. Source For Cost Analysis and Forecasting
- CPR offers an opportunity to analyze your competitors' cost structures relative to promotion allowances and timing.
- Determine if list pricing is a factor or are lower trade acquisition prices (PPP) effective tools.
- Using past history of timing and discount levels improve your forecasting abilities.
- Determine if competitors' published list prices are used or if is there an actual lower customer acquisition price.
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