POS Data Analysis

When we speak of actual sales data, POS data may come to the minds of many people. POS data that has the accumulated sales data of each retailer can be called gold mines which provide a lot of information about marketing strategies. And today, as disclosure of POS data spreads, the need for analyses of POS data appears to be spreading from retailers to manufactures. But it is necessary to handle a large quantity of data to analyze POS data, and it may be difficult to deal with it internally.

Recently, we have actually received a request for a POS data analysis from a certain foreign-affiliated manufacture and have completed this analysis.

In this report, we would like to consider the possibility of analysis utilizing massive amounts of POS data, the importance of which is expected to rise in the future. Moreover, through SPI know-how, we take pride in flexible problem solving which corresponds to client needs; our strategy derivation is enabled by analyzing POS data.

Though the following is a simplistic example, we can provide the following analysis and service in concrete terms.

Price Response Analysis
We can build a price elasticity model from a relationship between price and sales as shown in the following graph. In addition, an efficient price range can be derived from this model. It may be possible to analyze the effectiveness of time service using data by time slot.

Building Sales Forecasting Models
It is possible to build a sales forecasting model by analyzing POS data by time-series with a number of other variables.

Using ad volume, promotion, POP, number of faces and some other marketing items as variables enables us to measure and evaluate the effect of the strength of each item. If competitor information is available, the influence of competitor marketing activities on your product can be analyzed.

Moreover, sales forecasting models are discussed on the following site:
Ad Exposure Strategy Process to Maximize ROI of Advertising

ASP Services
It's often the case where people say "I would like to process POS data myself any way I choose, but it's too much of a bother to treat an enormous amount of data."

For such a situation, SPI offers a service called "SPIRIT" as an ASP service to handle big loads of data such as POS data.

With "SPIRIT", you can do simple tabulations, get the results of multivariate analyses and download them as graphs. Once the analysis process / result is entered into the SPIRIT system, it is possible to get the latest information and to build output from POS data that is accumulated daily by pushing one button.

For more information about "SPIRIT", please see following site:
Online Marketing Database (SPIRIT)

In addition, it is possible to verify cannibalization from the relationship between your products and deeply analyze the purchasing action of each consumer each by matching them with member card data.

Please by all means contact SPI if you have the need to derivate effective strategies for sales from POS data accumulated every day.

Written by Yusuke Saito / Senior Analyst

Please contact us with questions or for more detailed information.
spiindex@spi-consultants.net