ZMP and CMA will try to integrate information from different sources, i.e.:
GfK ConsumerScan is used to observe the “fresh” categories - bread, meat, poultry, vegetables, fruit, potatoes, eggs, cheese and sausages - in all shops. (ZMP has access to ConsumerScan raw data via the
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Proceedings of the 1st EISfOM Seminar, Berlin April 2004internet. GfK has to classify EAN-products in these categories, ZMP/GfK have to solve the challenges mentioned above).
A selection of (packaged) categories is observed via ACNielsen for multiple retailers, drug discounters and beverage stores and by bioVista for organic specialist shops: milk, yoghurt, curd cheese, butter, cereals, fruit / vegetable juices, spreads, flour, frozen and canned vegetables.
ZMP will organise the process, examine the data quality, develop methods to classify organic fresh food and combine the multiple sources if the project is supported by the German Federal Organic Farming Scheme.
These data are useful for supporting commercial activities for organic food because
Producers can estimate their potential: which segments are interesting for investments?
They can optimise their field service activities: in which regions, shop types, retailers do my products have high distribution, and where are they underexposed?
They can evaluate the assortment / price strategies, success of retailers: how can I prepare myself well for sales talks with retailers?
They can benchmark their own business: how does the category trend in the total market / organic market compare to my own products? i.e. am I losing or gaining market shares?
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bioVista – retail panel for the organic food market
Christoph Spahn
111Abstract
bioVista is a retail panel for the organic food market. Within this panel, all market participants are able to influence and control their market position and to react to current developments in the market. bioVista provides reliable and important insights into the most significant sales channels of organic products for retailers, producers and everyone who is interested in the organic food market. The panel offers a continuous source of information and functions as an objective decision-making guide for all market participants. bioVista helps to improve the efficiency of marketing and product range development.
Introduction
bioVista analyses the scanner data of organic food stores and natural food supermarkets. These data provide comprehensive and reliable market information on the organic food sector. bioVista presents a reliable platform for decision making when it comes to assortment optimisation, pricing and supply control. Market participants are able to assess their own market position and market strategy. Furthermore, they are able to optimise the placing of products and boost their economic situation compared to similar retailers.
Specialized retailers for organic products get solid decision-making support in all important assortment questions. Analysis of sales volume, sales slips and product rankings provide an overview on current developments in the own store and in the organic market in general. The measurement of product range optimisation and placing is supported by detailed analysis of product groups and baskets of goods. Therefore, the decision-making process concerning the product range is more reliable.
Producers benefit from an up-to-date examination of sales developments as well as a review of their own situation compared with the total market. bioVista answers questions like “How will the sales volume of the organic market develop? How will the sales volume of separate product groups grow?” The panel helps to tackle specific questions and comes up with a thorough analysis.
bioVista offers valuable information on product range development and brand management. “How can the position of a brand be sustained competitively? Which products are successful? How frequently is a brand present in the market and how strong is the brand as such?“ Moreover, the risk associated with new product introductions can be reduced. From the objective information that bioVista provides, the actual potential of a brand is revealed. The panel functions also as a useful tool to control marketing activities. As a result, success and effects are easier to identify. Concerning the supply strategy, producers are again guided in their decision-making process. Successful strategies can be defined and individually realised. bioVista customers exclusively receive special analysis, for instance, pricing tests.
bioVista is a cooperation of three companies looking back on a long consultancy experience. They have been analysing current issues for the organic market as well as important issues in data mining. Founded as a private initiative, they noticed the demand for panel data for the organic market. The development of
111 Christoph Spahn, Consultancy synergie, Galvanistraße 28, 60486 Frankfurt/Main, Germany, +49 69 71910342, +49 69
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Proceedings of the 1st EISfOM Seminar, Berlin April 2004bioVista takes place without national or panel operator support. At present, the bioVista team is engaged in topics such as the advantages for European countries already using bioVista data and the question of its relevance for other European countries. The expansion of bioVista in Europe and the search for partners are currently being considered.
Methodology
After one and a half years of testing, bioVista now delivers data for the German organic food sector. The test phase was carried out in trial-stores in order to, for example, resolve technical problems. The procedure for data collection is based on gathering scanner data from organic food stores and natural food supermarkets using merchandise management systems. The scanner data are encoded and transmitted via the Internet. Data are processed and analysed with software developed especially for bioVista. Currently, 50 retailers supply the panel with their data. For this reason, the accuracy and reliability of data is assured. bioVista cannot quantify the market volume in numbers, but instead addresses the information needs of individual companies. There is no claim for the data to be representative.
Results
One significant application for bioVista is the development of the product range. The identification of fast-selling products or brands shows product trends in the organic market. Consequently, producers are able to react. The following chart shows the sales development of different product categories per month. Detailed knowledge of product groups and consumer behaviour are significant information sources. bio Vista is the only platform that provides market data for specialized retailers and for producers of organic products. The data help to make product range developments and decisions more professional.
Sales development of products categories
- indication of average sales volume per store -
0 10000 20000 30000 40000 50000 60000 70000 Fr ische 58742 58214 61673 61211 60332 55165 54274 45807 Tr ockenpr odukt e 24807 23848 25753 24553 23455 21548 22749 19721 Kosmet ik 5320 5184 5596 5858 5707 7298 5666 5123 Get r änke 3771 3869 4515 4583 5208 5197 5525 4846
Sonst iges/ Nonf ood 1846 1678 1935 1868 1725 1692 1730 1547
Jan Feb Mrz Apr Mai Jun Jul Aug
f resh product s dr y pr oduct s cosmet ics bever ages ot hers/ nonf ood
March
Figure 1: Sales development of products categories. Indication of average sales volume per store
Sales volume in Euro
Proceedings of the 1st EISfOM Seminar, Berlin April 2004