SKU performance and distribution: A large-scale analysis of the role of product characteristics with store scanner data

Hirche, Martin; Greenacre, Luke; Nenycz‐Thiel, Magda; Loose, Simone Mueller; Lockshin, Larry

doi:10.1016/j.jretconser.2021.102533

Cited by 8 publications

(8 citation statements)

References 25 publications

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“…The analysis shows that a higher unit price, here above $19.50 USD per liter, is associated with market share overperformance (under-distribution). This is in line with previous findings [14]. Pricing is a very strategic decision and needs to be adjusted for competition and demand dynamics on the consumer and re-seller side.…”

Section: Product Characteristicssupporting

confidence: 91%

“…Prior literature suggests that various product characteristics may be associated with above or below expected market performance of consumer-packaged goods, regardless of how widely these are distributed. For example, Hirche et al [14] show that product price, brand (private label v. national brand) and packaging size are associated with market share deviations of SKUs from the distribution velocity curve. Based on their findings we would expect wines with higher unit prices, private label wines, and wines with bigger packaging sizes to be overperforming, which means they have excess market share based on what distribution velocity would estimate.…”

Section: Product Characteristicsmentioning

confidence: 99%

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Distribution velocity in wine retailing

Hirche,

Loose,

Lockshin

et al. 2023

WEP

Self Cite

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Little is known about the relationship between distribution and market share in the wine category. Understanding the influences of product and distribution characteristics at the SKU-level and incorporating them into marketing strategy and planning has important managerial and academic implications. Sales of 3,524 wine SKUs across 4,218 stores in 4 states in the US over one year of observation are analyzed. We use an established distribution velocity model (Reibstein & Farris 1995) to estimate the relationship between distribution and market share. We then use the market share deviations from the expected values and apply a secondary robust regression to investigate possible relationships between various product- and distribution characteristics and those market share deviations. The results show that the distribution velocity in wine retailing is convex and increasing, in line with previous findings for other consumer-packaged goods in the marketing literature. Beyond distribution breadth, we find that overall parent brand performance (above), unit price (above), packaging type (above), country-of-origin, grape variety, sales consistency (above) and store specialization (below) are associated with above or below expected market share of wine SKUs.

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Section: Product Characteristicssupporting

confidence: 91%

Section: Product Characteristicsmentioning

confidence: 99%

Distribution velocity in wine retailing

Hirche,

Loose,

Lockshin

et al. 2023

WEP

Self Cite

View full text Add to dashboard Cite

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“…Setting up a unit to produce smaller size SKU units is cost beneficial from the organization's viewpoint. From the consumer perspective, a smaller size SKU means a comparatively lower price range than a green product which is only offered in bigger SKU units (Hirche et al, 2021).…”

Section: Discussionmentioning

confidence: 99%

Constituents Affecting Brand Loyalty of Sustainable Beauty and Personal Care Products

Seal

Bag

2022

MMI

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The growing air, water, and plastic pollution, wastage of food, deforestation, and chemical manufactured products have given rise to the concept of green marketing. Nowadays, consumers are more aware of their environment and health, and they look for eco-friendly products that are free of toxic materials. Many brands have looked into these issues. Keeping in mind the consumer’s desire, they have started manufacturing eco-friendly, free of toxic and recyclable products. This study aims to determine the antecedents that will affect the purchase decisions of Generations Y and Z consumers purchasing green products from the beauty and personal care industry, which can finally lead them to become brand loyal. An explanatory research design was carried out to develop an empirical result for the study. A self-administered questionnaire was elaborated. The responses were measured through a 5-point Likert scale. The questionnaires were distributed through online mode to the respondents. The sample for the study was selected through self-selection sampling. A total of 250 responses were analyzed. The data was analyzed through structural equation modeling with the help of the statistical tool Smart-PLS version 3.3.9. The study’s findings showed that green marketing mix, brand knowledge, and culture positively affect green purchase intention and finally lead to brand loyalty. The results also depicted that the reference group moderates between green purchase intention and brand loyalty. The overall understanding of green marketing and its impacts on the consumer’s purchase decisions, which leads to brand loyalty, would help the brands establish different marketing strategies for attracting and engaging the consumer with higher consumer retention. It would help the brands to create brand image, consumer satisfaction, and trust among the consumer towards the brand.

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“…In order to explore wine sales in depth and answer the proposed research questions, we used the IRI Infoscan database, which reports the scanner data of the sales of still and semi-sparkling wines (wines with an excess pressure, due to carbon dioxide in solution, of not less than 3 bar when kept at a temperature of 20 • C in closed containers) throughout Italy for the MMR channel, including superstores (hypermarkets), supermarkets, selfservice stores (superettes + minimarkets), and discount stores. Scanner data has been widely used in the literature to investigate the demand for food products [14,[38][39][40][41][42][43][44] and wine [27,45]. The advantage of using this type of revealed preference data is that it refers to consumers' actual purchases, resulting in a more reliable and useful analysis of market trends [40,41].…”

Section: Methodsmentioning

confidence: 99%

The Effects of the COVID-19 Pandemic on the Mass Market Retailing of Wine in Italy

Gerini

Dominici

Casini

2021

Foods

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The purpose of this study was to provide a detailed framework of wine purchases in supermarkets during the COVID-19 pandemic. The unexpected diffusion of the virus and the restrictions imposed in Italy to prevent its spread have significantly affected the food purchasing habits of consumers. By analyzing the scanner data of the wine sales in the Italian mass market retail channel, this study was intended to show whether and how the dynamics triggered by the pandemic have modified the overall value and type of wine purchases, focusing on prices, formats, and promotional sales. In particular, this study explores sales in two separate periods, namely March–April (the “lockdown”, with general compulsory closing and severe restrictions) and June–July 2020 (the “post-lockdown”, in which some limitations were no longer effective). The analysis of wine sales during lockdown and post-lockdown and the study of the variations compared to the sales of the previous years showed some significant changes in purchase behavior. The results could provide managers, researchers, and policy makers with extensive insights into the purchasing patterns of consumers during this unprecedented time and reveal trends that may characterize the structure of the future wine demand.

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SKU performance and distribution: A large-scale analysis of the role of product characteristics with store scanner data

Cited by 8 publications

References 25 publications

Distribution velocity in wine retailing

Distribution velocity in wine retailing

Constituents Affecting Brand Loyalty of Sustainable Beauty and Personal Care Products

The Effects of the COVID-19 Pandemic on the Mass Market Retailing of Wine in Italy

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