Consumers Love a Deal
Automotive product manufacturers and retailers have long enjoyed a marketplace where consumers exhibit loyalty to a wide range of iconic brands. These brands have stood the test of time and define value for an automotive consumer who understands true value often means more than price. Automotive shoppers tell us again and again that they buy brands that represent quality, better performance, ease of use, or longevity, and they are even willing to pay a bit more for it. However, when offered the chance to buy their preferred brands on sale, consumers jump at the chance. A quick analysis of data from our Retail Tracking Service uncovers countless examples of items being promoted and generating a significant lift in unit sales during the promotional period. Accurately measuring the promotional lift created is important for retailers and manufacturers, so they can collaborate in optimizing both consumer traffic and dollar profitability.
A Need For More Granular Information
Until now, analysis of promotional events and their relative effectiveness depended on using the monthly trend from our Retail Tracking Service and trying to overlay a promotional calendar that may or may not align by month. Even this imperfect method is helpful in discerning a promotion’s result. In one recent case, a brand was on promotion for a period that spanned late January 2013 into February. Using the chart below, we can see that the monthly data revealed February unit sales volumes nearly 50 percent higher than an average month (12 months ending October 2013). Although we’ve withheld the category and brand names, this is an analysis of actual data during a known promotional event. Clearly, this promotion “moved the needle.” However, a much more refined view of this promotion’s effectiveness can be gleaned by looking at weekly sales data. Available as of the October data release, Retail Tracking Service data now offers weekly time periods. The weekly data trend in the chart illustrates that the promotional peak spanned the last week in January and the first week in February; it created a lift nearly double the average monthly volume. Additionally, the weekly analysis shows us the promotional peak is nearly 50 percent higher than what we could conclude with the monthly data alone.
Collaborating More Effectively
Weekly granularity will allow manufacturers and their retail partners to be smarter about how to optimize price, deploy promotional tactics, and measure the results. In the end, this should enable both parties to be more profitable, while ultimately satisfying the consumer with the right products at the right price. Please contact your NPD representative to let us know how we can help you begin to leverage the benefits of the new weekly data.
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