Why Should You Conduct a Market Audit in Your Retail Business?

Why Should You Conduct a Market Audit in Your Retail Business?

An “audit” is simply another word for an analysis. As your retail company starts to evolve, you’ll need to conduct several audits to ensure you have the best possible plan for success. For instance, you might conduct a marketing audit to make sure that you’re speaking your customer’s language. On the other hand, a merchandising audit ensures you’re implementing the right steps to take your product to market.

A retail market audit is perhaps one of the first evaluations you’ll do as an entrepreneur or business owner. It acts as a kind of feasibility study, examining the industry and determining whether there’s a place for your product. Market audits tell you whether retail buyers are ready to buy whatever you’re selling.

retail market audit Why Should You Conduct a Market Audit in Your Retail Business?

Explaining the Market Audit for Retail Companies

You only have one chance to make the right first impression on any industry. As you head into the business world, a market audit ensures you have all the resources and information you need to attract the right buyers for your product. Here at Dynamic Retail Solutions, we use marketing audits to make sure our clients are ready to earn the attention of distributors and retailers.

Market audits occur over a one-month period and deliver a host of useful information, including:

  • A competitive environment synopsis: A competitive analysis can help you to figure out where to position your product or company. By looking at other sellers in your space, you can gather important inspiration on everything from price margins, to branding strategies.
  • Preferred packaging configuration: Will your retail buyers prefer to buy your product in bulk, or in smaller segments? A market audit can tell you which packaging gives the best return on investment.
  • Distribution requirements: If you’re planning on working with a distributor, a market audit will help you to understand what these experts need from you. For instance, your distributor might ask you to follow a specific timeline with deliveries.
  • Target retail price points: How much profit can you expect to earn for a specific volume of your product? Market audits examine the purchase potential of the current market, so you can make predictions on cash flow and investment.

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Get to Know Your Retailer

There’s more to being a successful company in today’s competitive environment than having the right product. While a good USP is sure to take you a long way, you also need to establish lucrative relationships too. For instance, the connection you build with your distributor will help you to get your product onto the right shelves. A good relationship with your retailer will make sure you continue to earn a sustainable profit.

A market audit can also give sellers access to valuable retailer insights and feedback. The more you learn about what your retailer expects from its partners, the more likely you are to earn a space in their store. Market audits highlight:

  • The required margins of specific retailers: How much you must sell to please your partner.
  • Required trading terms: The rules you need to follow to preserve your relationship.
  • Retailer review dates: When you can expect to discuss your performance with a retailer.

What Happens at the End of a Retail Market Audit?

Market audits prepare you to enter your chosen industry on the right foot. When we finish our month of market research, Dynamic Retail Services provides clients with a comprehensive go-to-market plan. Specifically designed for you, our 100-day implementation plan makes earning profits easy.

We go the extra mile with market audits. If we can’t find a buyer for your product, but we believe in your concept, we can still help you grow. DRS may be able to represent your brand on an international and domestic basis. If you’re interested in conducting your own market audit, reach out to Steve Wooten today on +61 424 503 837.