Retail Sales Measurements

P.O.P. Effectiveness Tests

Annual Retail Census

In-Store Observations

P.O.P. EFFECTIVENESS TESTS

For over 30 years, GfK Audits & Surveys has been the leader in measuring the effectiveness of point-of-purchase advertising and promotional media. Having conducted more than 5,000 tests, we have both the experience and the expertise to handle all aspects of the research process.

Measuring ROI

The primary measure of success is increased sales, clear-cut evidence of bottom-line ROI.

A frequently used methodology for in-store tests is the Matched Panel design which offers efficiency and effectiveness on both a measurement and cost basis.
In brief, this technique involves the set up of two (or more) panels of stores which are matched as closely as possible on pre-set criteria during a non-test “base” period. The test variable ( an in-store ad, display, aisle violator, coupon dispenser, shelf talker, etc) is then introduced into one of these panels and results are compared to the other non-test panel.

Reading Results

A major strength of this design is in the reliability and clarity of reading results.
Sales (and share) performance can be compared directly in two ways:

TEST PANEL		CONTROL PANEL
BASE PERIOD		TEST PERIOD

A straightforward calculation of indices provides a picture of the results; a statistical analysis determines the validity vs. the pre-determined objective.

All sample stores are measured through the base period to determine normal sales rates and shares. During the matching process two panels are selected to replicate each other as closely as possible. One (test panel) receives the test variable(s) while the other (control panel) does not.
The two panels are then monitored to ensure that the test variable is maintained and represents the only difference in selling conditions between the two panels. Sales are measured during this test period to assess the performance of the test variable.
Following the test period, the resulting sales data are analyzed for actual as well as covariant differences. Other statistical techniques, such as regression modeling, may also be employed, where necessary, when unanticipated competitive activity or other uncontrollable conditions occurred during the testing phase.

Lastly, a post-test period is monitored to determine if there is any longer term sales lift as well as to evaluate if, and to what degree, the test conditions cannibalized any potential future sales.

Test Period vs. Base Period
Total Test Brand – Volume Per Week & Share of Category

Control Panel

Test Panel

Control Panel

Test Panel

Note: All measures of difference are significant at the 95% confidence level
( ) = Index = Test Period/Base Period (Base = 100)

Reliability & Accuracy

GfK Audits & Surveys has worked with almost every major retail chain organization in the U.S. across the complete spectrum of trade channels. We can assist you in acquiring the retailer’s cooperation to conduct the test and collect the POS data necessary to complete the initial matching process as well as the test and post-test reporting.

We are able to accommodate virtually any data file format in which the retailer will provide their data.
Our systematic data entry and quality control procedures, along with our regular communications with the retailer, ensure that all data are verified, checked and processed to the highest industry standards.
In the rare instances where scanner data may not be available, our local-market audit staff will conduct manual audits.

Additional In-Store Services

Our Field Management team can arrange for trained, local-market auditors and interviewers to execute any needed in-store monitoring or interviewing:

Visit stores during the test and post-test periods to monitor and report on the presence (and proper functioning) of the POP being tested, out-of-stocks, shelf inventory, competitive activity, price reductions, etc.
Digitally capture in-store conditions.
Conduct in-store surveys of shoppers after they have experienced the test conditions, getting your customers’ immediate reactions and shopping behavior at the point-of-sale.
Interview store personnel to gauge their opinions on the impact and maintenance of test conditions to uncover any latent issues before they become problematic to the program.

Reporting/ Analysis

All data are collected at the individual UPC/SKU level which can then also be aggregated to provide data by types, formulas, sizes, brands, etc. up to and including the overall product category. Typically, reported measurements include the following by Base vs. Test vs. Post-Test periods:

Retail Sales - units, dollars, equivalent units
Brand Shares - units, dollars, equivalent units
Relative Sales Changes - Test Panel vs. Control Panel
Relative Gain (or Loss) in Test Panel vs. Control Panel
Average Sales per Store
Distribution and Out-of-Stock
Retail Pricing Analysis
Point-of-Sale Activity

Reports are graphically presented with full analysis to make them easily usable.

Benefits of GfK Audits & Surveys

No other research partner can offer you a greater combination of experience, talent and capability. GfK Audits & Surveys provides

proficiency in test design and matching store panels
ability to gain chain cooperation
facility to collect and process data
vast network of trained field personnel
superior analytic abilities to deliver insights, not just reporting
consummate reputation for superior quality research
affordability
assistance in preparing sales materials and presentations to both retailers and customers

For more information contact Jim Fleckenstein – 212.823.5006 or jim.fleckenstein@gfk.com

LocationScan ™

If the P.O.P. to be tested is not limited to a specific store section and/or the product category is sold in more than one location in the store, then GfK Audits & Surveys’ LocationScan™ may be the ideal measurement solution.

LocationScan™ provides the ability to measure sales and shares from every independent location where a product/category is located within the store. For example, a category such as Household Batteries could easily be sold in 8 or more locations in a mass merchandise outlet: