Price monitoring of consumer electronics – a guide for brands
- 08 May 2020
The consumer electronics industry characterizes in dynamic changes and high competitiveness – every year more and more competitors appear, and products are easy to compare. High level of innovation shapes the market and intensifies these activities. This category also often experiences price wars and reductions, which have a significant impact on the level of sales, as well as on brand image. What are the specifics of this industry and how can price monitoring be useful to brands of consumer electronics?
Prices in the electronics industry
Price monitoring, particularly in the case of small household appliances and consumer electronics brands is key. With it, you can track the prices of your own products, verify if shops sell them respecting the recommended price (SRP), and find any discrepancies. It also allows you to monitor competition and observe price fluctuations on various product groups. Thanks to this, it is possible to optimize your offer for resellers, which is particularly important when selling top products.
Distribution monitoring in the electronics industry
When monitoring prices, it is also worth observing offline distribution. Electronics stores differ from each other in size, assortment, and location. Monitoring allows you to check in which stores the shelves for given categories are the widest, as well as verify whether the offer of your brand’s products is appropriate in comparison to your competition. Distribution tracking also helps enforce the availability and display of your products agreed with the category managers of individual supermarkets. Availability reports on the Dealavo platform allow you to automatically check if SKUs have appeared in given markets and then use this knowledge during e.g. renegotiation of commercial conditions.
Monitoring of promotions in the electronics industry
We explained the essence of promo monitoring in another article. In the electronics industry, however, the role of promotion is particularly important. In such a competitive market, sellers often set aggressive promotions, and brands decide to buy banners on e-shops to promote their own products. Monitoring banners allows you to check whether the advertisement is really displayed on the store’s website, and if not, to alert the store that they are not fulfilling the contract terms. The tool also allows you to track your competitors’ banners and see what products they promote and when. Observing the market in this way, you can notice trends and predict competition steps, and then adapt your strategy to them.
It is also valuable to get information about cross-sell promotions that are difficult to monitor manually. A given brand may, for example, notice that a supplementary product from another brand is added to their product (even though they have an analogous product on offer themselves).
New products in the electronics industry
Market monitoring is also important when introducing new products. Price tracking allows you to compare new products with a similar offer from competitors and determine the optimal price level. The acquired data also allows you to offer new products in the first place to the most stable price resellers (for example when combined with selective distribution criteria, such as an appropriate training of specialized personnel). Then observing the level of sales in such a market will let you successfully monitor how consumers react to the given offer, and then verify the recommended price. Thanks to this, a wider group of sellers can then be offered products at optimal quantities and prices.
If you are looking for a platform for comprehensive monitoring of prices and availability of products on the market, please contact us. At Dealavo, we work with brands from a variety of industries, offering them tools for automated and comprehensive market monitoring. We will help you choose solutions that will help you succeed in launching new products and effectively optimize your current offer.