Top 5 Benefits of Conducting a Channel Audit:
As the complexity of retail environment competitive landscape accelerates, a much more effective audit is emerging. Companies have generally conducted audits to evaluate their own products and compare their products to the competition at a high level. Packaging professionals are bringing a new level of expertise to these retail channel audits, which allow for more powerful insights that can guide later project phases, such as concept ideation, and result in a more effective final product offering.
The use of a channel audit can ensure companies deliver on their brand promise, while giving them a competitive edge, preparing them for channel expansion, and improving the customer experience.
Below are the top 5 reasons we’ve found that channel audits can be leveraged to improve your business:
- Reduce Risk of Failed Product Launch – According to a Harvard Business Review article, 75% of new CPG product launches fail. The cost of a failed new product launch in these markets is astronomical. Conducting a retail audit allows companies to reduce the risk of failure through the understanding of how a product or package can be effectively compared to the competition at the retail level. It provides insights so that the final product is more closely aligned with the company’s targeted goals for this product.
- Product Differentiation & Package Innovation – Whether during a new product launch or brand refresh, differentiating the packaging from competitors is a must for success. The insights a channel audit provides can be used to help guide packaging innovation and concept development in ways that meaningfully resonate with consumers. In an environment where habit often prevents shoppers from trying new brands, designing a package that improves consumer connectivity to the brand is crucial for success.
- Package Sustainability – As sustainability remains one of the top trends in packaging, evaluating the different materials and designs used by competitors can give companies ideas as to where to increase transparency, reduce materials, increase product efficiency and while continuing to provide value to the consumer.
- Understanding of Packaging Performance Within Specific Channels – Packaging departments often have a gap in the understanding of the different channel environments in which their product will be sold. A channel audit can provide unbiased, professional, complete data so that the packaging can be designed and built to excel throughout the various channels in the retail environment.
- Reduce Damage and Increase Quality – A channel audit can help companies gain a comprehensive understanding of the competitive environment, shelf requirements, or standard quality. For quality remediation, a channel audit can determine which channels the packaging is performing poorly and help to determine standards for packaging redesign.
When conducting a channel audit, ensure you receive a balance of both technical and marketing insights. Look for results that will drive innovation and package ideation.
Adept Packaging is the trusted expert for packaging engineering and serialization, providing teams with focused capability through staffing, engineering services, business processes and technology.
For assistance with any of your retail channel audit needs, contact us:
Jared Spencer | +1.401.862.8667 | firstname.lastname@example.org