Tracking Retail Sales

Abstract

Changes in technology now permit far more effective market analysis than in the past. Computer-based scanning techniques, Internet-based household panels, and more sophisticated trading area coverage by the Census Bureau yield highly detailed data about products and customers. These data can be analyzed using advanced statistical techniques to yield the information needed to make effective marketing decisions. This chapter discusses how these changes can affect wine retailing. Most of the focus is on the use of data generated by electronic scanning systems that record retail product movement. These data have been available for more than a decade as universal product codes (UPC) have been adopted widely. Marketers can assess how they are doing against their competition, identify trends in category, product, and brand movement, compare prices and movement in different stores, and calculate market shares. The data can be analyzed in conjunction with U.S. Census and panel data that record consumer demographic information, preferences, brand recognition, and purchase behavior to guide decisions about product characteristics, positioning, pricing, and promotion. Scanning data covers sales mostly in supermarkets and other large outlets. It generally misses wine sales in specialty stores and on-sale premises. The results are biased in that they miss sales of the more expensive wines that are relatively more important in the latter outlets. Specialized firms are active in collecting and organizing scanning data and selling it to interested clients.