Retail Case: Why Share of Visual Inventory (SOVI) really matters for Sparkling Soft Drinks in Taiwan?
Getting products listed in target channels is critical, but Share Of Visual Inventory (SOVI) is just as important – ensuring products are physically on shelf and working to grow share of shelf facings will drive increased sales performance. Getting a fast, reliable read on SOVI across key channels and locations can however be challenging, but at the same time, highly informative as this recent nationwide Sparkling Soft Drinks audit in Taiwan shows.
(Nationwide Sparkling Soft Drinks Audit in Taiwan for 13 major brands, covering 110 Convenience Stores: 7-Eleven, Family Mart, Hilife and OK Mart)
• A small number of brands dominate in soft drink availability – high variation in availability with a small group of top brands recording at 90% +. Virtually all other brands sit in a second tier with availability of 20% or less. Possible opportunities to improve listing of some of these second tier brands and improve overall availability?
• Across the brands only 30% (4 out of 13) have 2 or more facings on shelves –across the major brands, only Coca-Cola, Sprite, Pepsi and Hey Song Sarsaparilla have 2 or more facings, ranging from 2.1 to 4.7 facings. All others have an average of 1. Potential to increase facings for selected products?
• Top 3 brands account for more than HALF of the total facings of sparkling soft drinks – Coca-Cola, Sprite and Hey Song Sarsaparilla account for 52.8 % of the total facings (total 2301 facings in 110 convenience stores). Share figures for other brands are typically 2% or less – a far lower opportunity to impact consumers awareness and achieve sales.
With a clear understanding of the facing and share information, we can better understand sales performance and how to drive improvement, monitor the relative gain/loss between own brands and competitors, as well as understand overall category trends over time.
Using the latest retail audit technologies, it’s possible to quickly and easily compare SKU level performance metrics and access backup imagery for any location – all in real time. In a single glance, for any SKU, check;
- Stock levels/ OOS status
- Current and/ or promotional pricing
- Floor stacking, secondary display
- …and any other metric of interest