Example of price banding analysis of price bands

Based on the way the price band analysis of commodities, for example, the following is the sales and display of soy sauce category in a store:

(1) Based on the above data, draw a commodity composition chart: the horizontal axis is the price of commodities, and the vertical axis is the display row. For the commodity composition chart, you can find the overall impression of the chart is the left high right low flat development trend (the following chart).

(2) The price band data in the above table:

Price band (PZ): 0.90 yuan to 7.20 yuan

Price line (PL): 8

Price point (PP): 1.00 yuan

Price zone (PR): 0.90 yuan to 1.50 yuan

(3) The relevant analysis of the graphic Conclusion of the analysis:

Centered at $1.00, there is 1 price line dotted on its left side (PL of $0.9) and 3 price lines on its right side (PL of $1.10, $1.20, and $1.50, respectively).

The commodity composition chart forms a maximum peak area around 1.00, with three rows of support at $0.9 to the left of the price point, and nine rows of three price lines to the right of it showing a slow downward trend.

Above $2.00 price point area*** there are 3 price lines (PL at $2.20, $4.50, $7.20), except for $7.20 at 4 platoon, the rest of the 3 platoon, there is a slow upward trend, but here at $7.20 there is no continuation of the development of the continuation.

(4) the characteristics of the composition of goods:

From the price positioning of the entire category, mainly focused on the low-end, so there is a sense of emulation of the discount stores in the operation of goods. The price point of the category is 1.00 yuan, so about 1.00 yuan for the category's main price. Commodity development focus on this price point near the goods, however, the enterprise does not want to give up the high-end market, so in the 4.50 yuan and 7.20 yuan between the launch of high-priced goods, but do not want to give customers the impression of expensive, so the number of display surfaces are locked into three rows. Regrettably, it has never been able to form a second peak area in the high-end market. If we were to boldly enrich the product to form a second peak area, so that the high-end products appear as a price range (PR) concept rather than a line (PL) concept, we would not only be able to increase the visibility and attractiveness of soy sauce, but also increase the gross profit, and improve the profitability of the soy sauce subcategory in the basic condiment category.

From the first price area to the second price area ready to develop the price line of 2.20 yuan, in the form of three rows of noodles interspersed, isolated between the two peak areas, if only articulation fear unnecessary, unless it is a specialty product, or likely to be buried.

(5) Analysis:

The development of the category would like to grasp the high-end market but "want to talk about it". As the category of goods both want to take the discount route and want to grasp the high-end, and in the low-end display to do a lot (11 single product, 36 rows), while the high-end market only put 2 single product *** counting 7 rows, so that it is likely to attract more customers to buy low-end soy sauce, high-end customer groups is difficult to form. The category should boldly increase the real high-end area goods (including famous specialty products). For example, Lee Kum Kee as a representative of the specialty goods, to make the high-end characteristics of the peak area, while increasing the high-end brand of small-size products, and penetrate into the low-priced area, increase customer awareness of high-end soy sauce and the frequency of use, to cultivate and consolidate the high-end products of customers.

If the specifications are discounted, it will be found that the so-called high-end products in the current category are not high-end in the strict sense. For example: 7.20 yuan of Jenji (1000ml), discounted price of 3.60 yuan (500ml); 4.50 yuan of Jenji soybean (1000ml), discounted price of 2.25 yuan (500ml). Almost all of the goods in the current category are in small packages of goods under 500ml, is it true that residents in the shopping district prefer small-size soy sauce? Based on the current commodity composition, it is suggested that consideration could be given to increasing the variety of soy sauce in other sizes, for example, increasing the number of large-size (around 1,000 ml) and smaller-size (below 200 ml) commodities, which would take into account the different motivations and time and space needs of families as well as singles' needs, and increase the probability of customers purchasing non-daily commodities.

From the point of view of the brands involved in the current category, *** there are eight brands (Qiaowei, Tianhao Yuan, Dexinzhai, Hengshun, Shuita, Haitian, Lighthouse, Zhenji), which are both big national brands Haitian, Hengshun, Shuita, and some local brands Qiaowei, but the excessive number of brands disperses the opportunity for each brand to become bigger and stronger. A retailer category includes a variety of international, domestic, regional and local levels of the brand is relatively normal, attention should be paid to the development of a variety of brands to introduce the proportion and variety of choices. In this case *** there are 14 individual products, of which 5 are occupied by Qiaowei, 2 each by Tianhao Yuan and Zhenji, and the remaining 5 brands have one specification each. In this way, the retailer's main customer base prefers local products and exotic brands do not sell well.

The display of a product composition chart is multifaceted. When drawing a product composition chart, in addition to price point and number of display surfaces, comparative analysis can be done on specifications, sizes (e.g., apparel, etc.), and display surfaces. At the same time, when using the commodity composition chart, be careful not to ignore the connotation of the commodity. For example, whether soy sauce is a pure soy product or traditionally brewed ......

Be aware of the deceptive and non-unique nature of the numbers, and that the daily sales of each item do play a role in arranging the merchandise composition. However, be aware that the system's POS data may be distorted due to off-sales and over-the-top price dumps, and the information data should not be absolutized. If you blindly quote the results will be wrong, and even the origin can not be found. Speak with data, more careful!

Arranging the composition of goods in addition to considering the commodity strategy of the category, but also consider the characteristics of the business district, to understand the composition of the family demographic composition and the composition of the various age groups than, and then according to the characteristics of the residents of the business district, the existing composition of the goods to adjust, and constantly revise their own category structure, as close as possible to the reality of the customer's needs, and through the sales to test the results of the revision. (Commodity policy = the enterprise's own positioning = what to sell and how to sell = business)

Price band management should of course be centered on the customer, but not completely based on the current customer base, pay attention to guide the cultivation of tomorrow's customers. We are thinking a big step ahead of the customer, in order to be in practice than the customer half a step ahead.