Data on in-store product pricing needs to be current for CPGs to take action. However, the data is often months old when manufacturers and distributors receive the numbers. As a result, CPG manufacturers often find themselves unable to react promptly to changes in the market. Additionally, the data is often not granular enough, i.e. there is little visibility at the SKU-, POS-, or city level, to make key decisions quickly, resulting in lost revenue.
Some of the world’s largest CPG manufacturers, like Coca-Cola and Unilever, leverage store-level, same-day pricing data to drive sales and optimize margins:
1. Monitor Price Compliance
CPG brands use store-level insight to monitor in-store prices and track how prices change over time relative to the category. With these same-day insights, brands can make quick strategic decisions about pricing and compliance.
Mondelēz, one of the world’s largest CPG companies, used the Premise Price Tracker because they were having trouble tracking and improving their in-store pricing in key regions. By partnering with Premise, they were able to monitor stores in four focus markets in Europe and South America, receiving actionable store and SKU-level data in a matter of weeks. Premise’s pricing insights showed that their product pricing schemes were inconsistent in 79% of the stores visited across various markets. By comparison, key competitor products displayed consistent prices, revealing a key opportunity for Mondelēz’s pricing strategy.
2. Ensure Temporary Price Reductions (TPRs)
Manufacturers spend millions on in-store materials to inform shoppers about temporary price reductions. However, they rarely have quick access to store-by-store data on whether their point of sales materials (POSM) are being correctly executed. With Premise’s technology, CPG brands receive same-day data on how well high-priority stores execute TPRs and maximize activation ROIs by adjusting the execution strategy while the promos are ongoing.
3. Track Competitor Prices
Many buyers seek out discounts and promotions, and this is particularly true during times of rampant inflation. Manufacturers need to know as soon as the competitors’ prices change to adjust pricing strategies to prevent lost sales and maximize revenue.
A global CPG manufacturer lacked visibility into their brand’s distribution and pricing in traditional trade stores in Nigeria. They worked with Premise to track the prices of eight owned and competitor brands across 900 stores.
Data collection revealed significant disparities between prices in locations with either high demand (Abuja, Port Harcourt, Lagos) or areas with low supply (Borno State). Receiving insights in near real-time allowed the customer to ensure compliance with their own pricing across specific stores and act quickly upon changes in competitor pricing nationwide.
4. Benchmark Against Category Prices
CPG brands also use same-day data to benchmark prices against selected brands to maintain the proper pricing position within the category.
In emerging markets, it can be challenging for manufacturers to monitor the pricing and compliance of their products across various stores and channels. In addition, pricing is usually reported 4-6 weeks later at the city, state, or province level. Tracking pricing data at the store level and on a daily basis empowers CPG manufacturers to execute and adjust in-store retail strategy efficiently and effectively.
How Premise Monitors Prices
Premise’s innovative smartphone-enabled technology provides manufacturers with rapid and actionable data. Our Price Tracker provides store-by-store insights on price and TPR compliance, competitor pricing, and price positioning within specific product categories.
Our network of over six million Contributors worldwide can capture pricing information on the ground. This unique approach to data collection allows brands to monitor their product prices in every store, city, and region that matters so that they can take immediate action to adjust pricing in order to maximize sales and revenue.