Key Industry Perspective (KIP)
Single Sales Data Depositary for Foodservice Market
Objective
In October 2005 the FDF Out of Home Group set up a working party to review data
provision in the foodservice market (see summary of TNS's presentation to the
group: Consumer Information Data Requirements). The group developed the following objective:
To gain "A VERY CLEAR INDUSTRY VIEW" of the foodservice market through
accurate data to a common standard with common definitions
The OHG established that the data needs of all parties falls into 3 distinct
data types.
- Type 1: Sales led data
- Type 2: Outlet and channel hierarchy
- Type 3: Consumption and trend data.
The OHG's current focus is on sales led data.
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Background
The foodservice market is highly complex with product supplied by manufacturers
reaching the consumers plate via wide and diverse routes to market. The market
and its constituent categories have traditionally been measured via the use of
wholesaler data supplied to research agencies and then grossed up to give a
reading of the whole market. There are a number of issues with this method:
- Consolidation in the foodservice wholesaler market has made it easy for major
wholesalers to calculate their competitor's position
- At best traditional wholesalers only account for approx 25% of the foodservice
market so making the grossed up numbers an inaccurate read on the total market.
- This method traditionally ignores supplies to end users direct from suppliers
and supplies via operators own distribution centres or contract distribution
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Why Sales Data is Important
The availability of sales data is crucial to measuring both the effectiveness of
category plans and promotional activity. ECR initiatives that bring goods and
services to the consumer faster and at lower costs cannot be achieved, measured,
or costed effectively without the availability of such data. Furthermore, the
measurement of performance in the market is the true measure of competitiveness
and
the lack of reliable data make analysis of this key business measure
impossible.
Suppliers, distributors and operators all have some part of the data available
in the market but they also need visibility of data held by their trading
partners in order to make the best decisions for their business - see table below for
a description of this interrelationship.
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Work in progress
If the sales data from suppliers, operators and distributors were held in a
single system managed by an independent research agency it would be possible for
all parties to use the data available to develop their own plans.
A solution is being researched that would source key account data from wholesalers which would then be added to data supplied from manufacturers
on direct deliveries to end user operators. Under this system, wholesalers
would
be unable to calculate their competitors' position. This would eliminate the
issue of sensitivity for wholesalers whilst providing detailed and accurate
category data at all levels.
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OFSCI
The OHG believe that OFSCI can play an important role in the area of industry
data collection and dissemination to:
- act as the facilitator across end user operators, wholesalers and suppliers
- appoint a data partner to manage the programme
- manage the partnership between end user operators, wholesalers and suppliers to ensure the proposal becomes a reality
FDF will be discussing with the OFSCI Board and Advisory Committee to take on
this proposal.
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Last reviewed: 06 Mar 2006
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