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AGENDA
RETAIL AUDIT
CONCEPT
What is Retail Audit?
Establishing Outlet Population & Stores Surveyed
Collecting the Data
Statistical Expansion
Analyzing & Interpreting the Data
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WHAT IS RETAIL AUDIT?
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WHAT IS RETAIL AUDIT?
A survey performed by way of collecting data from pre-
determined Stores / Retailers and is conducted periodically
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DATA COLLECTED FROM VARIOUS STORE TYPES
Tracking what is happening in the retailer…
- Through Scan Data (electronic data) and/or Manual Auditing
- Monthly
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PURPOSE OF RETAIL AUDIT
The purpose of Retail Audit is understanding the performance of a company and its
brand compared to their competitors in the market
Is the price of a product
How big is the market share competitive?
of a certain brand?
How much is the stock of a
What is its level of availability product in the market?
in the market (distribution)?
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ESTABLISHING OUTLET
POPULATION & STORES
SURVEYED
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UNIVERSE AND PANEL
UNIVERSE PANEL
What is the meaning of Universe / What is the meaning of
Population? Panel?
Universe/Population is all the outlets / retail stores • Panel is a small sample of a Universe
that sells a certain product in a certain • Intended to mirror the Universe
geographical location • Visited regularly to gather the required
information
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RETAIL ESTABLISMENT SURVEY
Information taken in the survey:
Outlet details
(name, address, contact person etc.)
Store type
Before planning for Retail Audit, Selling area
we need to conduct Retail Situation (main street, secondary
street etc.)
Census to count the total
Number of check-out machines
population of Retail Outlets Number of store staffs
Years of business / ownership changes
Ownership type
Service type (Self service, assisted by store
owner)
Available statistic data cannot
Telephone number
fulfil our definition and need
Refrigerator availability
Products sold (e.g. dishwashing liquid,
toothpaste, instant noodle, cigarette,
shampoo, etc)
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SAMPLE DESIGN
Nielsen employs Stratified Disproportionate Systematic Random
Sampling
Store Audit is performed manually
Auditor will visit every store every
(computer generated forms),
month on the same date. Average
electronic (handheld devices), or
time variation is 30 days
scan data sent by modern stores
Stratified
•Clustering by region, shop types and turnover.
Disproportionate
•Determine the number of samples of each cell since
eachData
cellrecorded
requiresfor
different number
every SKU by of samples as
auditors:
representatives. All product in display shelves /
• Stock in the outlet (inside shop
racks, baskets, and promotional
area and storage area)
stands etc. will be recorded
• Purchases made by the outlet
for the past month
Systematic Random Sampling
• Average selling price
•Samples are picked systematically at fixed interval with
a random starting point.
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SAMPLE DESIGN
Why use such a complicated method?
Store Audit is performed manually
Auditor will visit every store every
(computer generated forms),
month on the same date. Average
electronic (handheld devices), or
time variation is 30 days
scan data sent by modern stores
Imagine the Universe a jar of candies..
Data recorded for every SKU by Which candies we will pick to get a taste
auditors: ofAll
the whole jar?
product in display shelves /
• Stock in the outlet (inside shop
racks, baskets, and promotional
area and storage area)
stands etc. will be recorded
• Purchases made by the outlet
for the past month
• Average selling price
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SAMPLE DESIGN
Nielsen stratified the universe based on its area, type, and Turnover
Store Audit is performed manually
Auditor will visit every store every
(computer generated forms),
month on the same date. Average
electronic (handheld devices), or
time variation is 30 days
scan data sent by modern stores
10 Large Provision
with Cigarette Sales
>= 1000 Stick per
day
15 Small Provision Then we will calculate the number of
with Cigarette samples needed in each strata based on
Data recorded for every SKU by its variety
Sales > 200 – 999
auditors:
All product in display shelves /
Stick in
• Stock per
theday
outlet (inside shop
racks, baskets, and promotional
area and storage area)
stands etc. will be recorded
• Purchases made by the outlet
for the past month
30 Warung with
• Average selling price
Cigarette Sales <=
199 Stick per day
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STORES SURVEYED
There are two types of stores
that will be surveyed
MODERN TRADE TRADITIONAL TRADE
Hyper / Super Provision* : Large, Medium, Small
(e.g. Hypermart, Superindo, etc) Semi Permanent Shop*
Minimarket High Traffic*
(e.g. Indomaret, Alfmart, etc)
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TRADITIONAL TRADE
PROVISION STORES SEMI RETAILERS
• Stores with permanent building, usually located in • Stores that sell FMCG products and most of their
housing areas product sell to other retailers, though they also sell to
• Also called General Trade end consumer with small proportion
• Criteria of Warung, Small Provision, and Large
Provision will be determined by • Criteria for Semi Retailer : 60% to 99% of their revenue
cigarette turnover (stick / day) coming from trading with other retailer/small retailer
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TRADITIONAL TRADE
SEMI PERMANENT SHOPS HIGH TRAFFIC
• Also known as “Kios Rokok” Traditional stores (can be permanent or semi
• Semi permanent building permanent) that is located on high human
traffic areas
For example: wet market, bus station, schools,
etc
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MODERN TRADE
MT HYPERMARKET MT SUPERMARKET MT MINIMARKET
Organized self-service store
Products are price marked either on the product or on the shelf
Shopping Basket/Carts provided for customers
Full range of personal care, home care, foods, commodity in all pack sizes
•Has 20 checkouts or above with •Has 3 - 19 checkouts with cash •Has 1-2 checkouts with cash
cash registers registers registers
•Selling area is generally 2500m2 or •Sales area is at least 200m2 •Sales area is generally 50m2
above •Example for Supermarket: •Example for Minimarket: Alfamart,
•Example for Hypermart: Lotte Mart Foodmart, Ramayana, Superindo. Circle-K, Indomart etc
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DATA
COLLECTION
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DATA COLLECTION
Store Audit is performed manually
Auditor will visit every store every
(computer generated forms),
month on the same date. Average
electronic (handheld devices), or
time variation is 30 days
scan data sent by modern stores
Data recorded for every SKU by
auditors:
All product in display shelves /
• Stock in the outlet (inside shop
racks, baskets, and promotional
area and storage area)
stands etc. will be recorded
• Purchases made by the outlet
for the past month
• Average selling price
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DATA COLLECTION
Every month, auditor will visit the same outlet on the same day
as the previous month visit
To ensure Nielsen Retail Audit can get all data according
reporting calendar, the following standard is applied:
• The period of audit for Indonesia is 30 days
• Monthly audit must fall between 27 – 33 days from previous audit, with 30 days as the
average
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STATISTICAL
EXPANSION
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STATISTICAL EXPANSION
is determined by
is not a measure of
SAMPLING Standard Error and when
mistakes
ERROR stated in percentage, it is
called Relative Standard
Error
STANDARD
ERROR
is the probability that the
true value lies between a
certain range of
measurement
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CONCEPT OF STANDARD ERROR
Sample size will affect standard error the larger the
sample size, the smaller the standard error will be
STANDARD
ERROR
For Nielsen RTA, there are two Nielsen standard for Sampling Error:
implications: For product with ND above 80%, RSE
of sales volume is:
To reduce the sampling error by half, we
will need to quadruple the number of
National Market ±3% S.E.
sample
Major Markets (region) ±6% S.E.
Accuracy in the National level will be
Minor Markets (cities) ±6-10% S.E.
better than areas with smaller market
breakdown (RSO/ASO)
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CONCEPT OF STANDARD ERROR… (1)
30 DOTS/SQ IN.
120 DOTS
SAMPLE SIZE = 120
WHAT CAN YOU SEE?
WOMAN
AGE 34 - 44
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CONCEPT OF STANDARD ERROR… (2)
100 DOTS/SQ IN.
400 DOTS
SAMPLE SIZE = 400
WHAT CAN YOU SEE?
WOMAN
AGE 34 - 44
HEALTHY
LIVES IN THE URBAN AREA
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CONCEPT OF STANDARD ERROR… (3)
400 DOTS/SQ IN.
1600 DOTS
SAMPLE SIZE = 1600
WHAT CAN YOU SEE?
WOMAN
AGE 34 - 44
HEALTHY
LIVES IN THE URBAN AREA
DRESSED UP
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ANALYSIS &
DATA INTERPRETATION
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4 DIMENSIONS OF RETAIL AUDIT
Sales (Volume, Value) Total National
Shares RSO/ASO
Distribution Trade Channels
OOS (GT/MT)
Av. Price
Purchase
Stock
etc… FACT MARKET
PRODUCT PERIOD
Total Category Monthly
Manufacturers Quarterly
Brands YTD
SKUs MAT
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FACT
% $
Numeric Distribution
Sales Volume (000 stc) Price / Pack (IDR)
= Store Carry “X” / Total
= Previous Month Stock + = Average RSP
Store
Purchase Volume – Current
Month Stock
Weighted Distribution Average Price / Stick
= Industry Volume of Store (IDR)
SoM (%) Carry “X” / Total Industry = Average Price / Pack /
= “X” Sales Volume / Total Volume Sticks
Industry Volume
Numeric OOS
= Store Not Available “X” /
Total Store
Weighted OOS
= Industry Volume of Store
Not Available “X” / Total
Industry Volume
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FACT
Stock Cover Days (day)
Purchase Volume (stc) Stock Volume (stc)
= (Stock Volume / Sales
= Total Purchase (based on = Total stock (based on
Volume) x #Days of the
invoice) stock count)
Month
Purchase Share (%) Stock Share (%)
= “X” Purchase Volume / = “X” Stock Volume / Total
Total Purchase Volume Stock Volume
Purchase Distribution (%)
= Store Purchase “X” / Total
Stores
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HOW TO CALCULATE MARKET SHARE?
Total Cigarette Sales
In Jakarta
45 Billion Sticks
A Mild Vol
In Jakarta
6 Billion
Sticks
A MILD volume share in Jakarta :
= A Mild Vol / Total Cigarette Vol
= 6 Billion sticks/ 45 Billion sticks
= 13.3%
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DISTRIBUTION
SALES SALES SALES SALES SALES
250 MIO 50 MIO 250 MIO 250 MIO 200 MIO
A MILD A MILD A MILD A MILD A MILD
AVAILABLE DO NOT CARRY AVAILABLE AVAILABLE OUT OF STOCK
NUMERIC WEIGHTED
DISTRIBUTION 4 / 5 * 100 = 80% 950 / 1000 = 95%
OUT OF STOCK 1 / 5 * 100 = 20% 200 / 1000 = 20%
IN STOCK 3 / 5 * 100 = 60% 750 / 1000 = 75%
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OUT OF STOCK
ND OOS Sales Stock Purchase Invoice
Yes No
Yes No
Yes Yes
Yes No
Yes Yes
Yes Yes
No
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Thank You
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