Al Goldsmith is manager of Maritz Custom Audit Group, which operates continental audits in major cities across the U.S. He was previously with A.C. Nielsen and earned his B.S. from Ball StateUniversity.

In recent years, the introduction of scanner equipment has eliminated many manual or custom audits. Although scanner data is highly cost efficient for collecting sales information, it cannot collect other pertinent product data such as facings, shelf-space, out-of-stock, and others. Concise and timely custom store audits are the answer for this vital information.

Custom audits, which involve actual store visits by trained auditors, are highly reliable when used to monitor product stocking levels, introduce new products or track market share. They are also indispensable when evaluating shelf positioning success and packaging appeal, as well as determining the relationship between shelf space size and profits.

Custom audits can track all types of consumer goods and are conducted in many retail store environments. These include grocery stores (with or without scanner equipment), convenience stores, discount stores, drug stores, department stores, hardware stores and warehouse stores. These audits may monitor a few selected speciality shops in one specific location or track a comprehensive nationwide study that combines a variety of store types in diverse geographical locations.

In today's highly competitive market, it is imperative that managers have accurate, valid audit information. The following applications illustrate how consumer goods manufacturers can solve marketing problems or answer marketing questions by using customized retail store audits.

Distribution and off-shelf display monitoring and maintenance

A bar soap company wants to monitor product stocking levels of an off-shelf "shipper" display and maintain point of purchase sweepstakes materials at major national supermarket chains. The promotion is designed to maintain and increase product awareness, sales, and category share. Auditors visit each store weekly to maintain stocking conditions and verify correct placement of all product. Placement of   sweepstakes materials at both regular shelf and display is also verified. In addition, pertinent store conditions are recorded.

New product introduction

A frozen food company employs a new product strategy of systematically introducing products into test markets with subsequent national roll-outs of a specific number of products each year. A decline in sales raises questions about the relationship between the sales decline and the roll-out of new products. The company addresses their questions with a customized in-store audit which is conducted prior to, during, and after the national roll-out of new products. The purpose of the audit is to:

  • Monitor distribution levels and freezer case allocation.
  • Compare benchmark findings to product introduction results.
  • Assess changes and relationships within and between measurements.
  • Identify brands, if any, that lost or gained significant freezer case space (i.e. facings, inventory) after the introduction of new products.
  • Measure any changes in overall linear freezer case space allocated.

Controlled product positioning study

A hardware company wants to track the sales impact of a special product promotion stocked at store check-outs and placed on display. A customized control store test tracks the units sold at each stocking location and the units sold as a result of various promotions.

Three store panels are created with similar customer demographics, store volume, and number of check-outs. In each of these store panels, alternative promotional approaches are tested. After a pre-test period to establish regular sales levels, the off-shelf displays, check-out displays, and special "on-pack" promotions are evaluated.

Promotional approaches are rotated among the three store panels under the close control of auditors. Results of the study are used to select the appropriate promotional approach and to project anticipated sales, market share, and profitability of the promotions.

Other applications

Custom audits may vary from manufacturer to manufacturer. The above examples are just a few of the many ways they may be used. Other applications could include mystery shoppers, product pickup, product photographs, or consumer intercepts. No matter which application is selected, custom audits must be monitored closely by the audit firm to ensure that accurate quality data are collected.

Summary

Custom store audits are essential for providing today's marketers with accurate, valid audit information. They are highly reliable, versatile and adaptable to any size market. For collecting information beyond sales data, custom audits are an excellent alternative.