To access the Premium: Overview - Discount Overview dashboard, expand the Premium Overview module and select the Discount Overview link.
When / How to use this dashboard
Understanding discounts will give you a piece of the consumer demand puzzle. Are discounts going up in your category or segment? How are they moving with respect to average item prices? What does it mean, for example, when discounts are falling and Average Item Prices are going up? This dashboard will bring these types of questions into focus for you. For this document we’ll be looking at the dashboard using the filters as shown below. There are 6 filters to configure:
- The ‘Category’ Filter will show your subscribed categories. Select one from this list.
- The ‘Market’ Filter will allow you to select one or more of the markets in your subscription. Select any or all of these.
- The ‘Transaction Year’ filter allows you to select data from the year you want to study. Select any or all years for which data is available.
- The ‘Slice Data By’ filter lets you choose between category segments and package sizes. Select one of these.
- The ‘Segment’ filter allows you to select one or more segments with your selected category to analyze. Select one or more of these. The default for this filter is ‘All Segments’.
- Finally, the ‘Package Size’ filter let’s you look at only the package sizes of interest. The default is ‘All Sizes’.
The first table show is the Discounting Statistics table. The top row show metrics from the last 30 days and the bottom row shows the same data from the same 30 day period from the previous year. Are margins higher or lower than last year? We see the Average Item Price is higher, but so are is the Percent Discount. In fact, discounts for this category are nearly 50% higher than the same 30 days from the previous year. One explanation could be that loyalty programs are capturing more customers at stores and rewarding consumers for returning and buying edibles.
The next 2 visualizations show us Sales vs. Discounts by month for the overall market in Washington where you can see the discounted portion of sales. Want to know how much these percentages represent in real dollars? Just hover over any section of the vertical bars to see the actual dollar values. For example in May, the 84% of sales represented $119 million. To earn that amount, retailers had to offer 16% or about 23.3 million in discounts across all categories.
How do these discounts break down across categories? The Category Average Item/EQ Price and Percent Discount shows how discounts compare by category at a glance. Compare the height of the ‘Percent Discount’ squares. In this case, Concentrates has the highest percent discount level at 19%.
The Average Item Price and Cost graph, tells us how price and average unit cost fluctuations relate to each other this year so far. AIP varied from $13.73 to $14.18, and costs varied between $6.70 and $7.01.
The Percent Discount by Filtered Selection displays a column of dots (color coded by segment) for each month of 2020 along the horizontal axis. The mean discount line shows a shift in discounting in April and May compared to the other months. Whereas most segments were discounted lower than 13.3% in the first quarter of the year, April and May told a very different story. What drove higher discounts in April and May? Notice the percent discount scale along the left-hand margin and the 11 edibles segments represented by a different color in the legend at the bottom. Edibles tend to have a short shelf life, so if there were an over-supply generated in Q1, retailers would need to move briskly to clear those items.
Which edibles segment do we want to be in if we’re only considering Gross Margin (in percent) and Percent Discount? The Gross Margin X Percent Discount by Filtered Selection makes this question very easy to answer. The lower right quadrant shows us the higher margins and lowest discounts. Mints, Gummies and Chocolates are three of the strongest choices. Note also that some products in Caramels, Chews and Taffy segment are close cousins to the Gummies segment but have slightly lower margins.
What happens when we compare Average EQ Price across our Edibles segments instead of Gross Margin %? The Average EQ Price X Percent Discount chart shows a slightly different picture. Notice the discount scale on the left is exactly the same, with a Percent Discount range of 10 to 16. The horizontal axis shows the average pennies per milligram price of each segment. It looks like the Honey, Sugar and Sweeteners enjoy the lowest Average EQ Price while the Mints require the lowest discounts to keep them flying off the shelves.
- Insights Premium Overview: Market Overview reveals many high-level metrics about a particular market using a configurable time frame.
- Insights Premium Overview: New Products shows what new products have come into the market by category and segment and brand over the last 90 and 180 days.
- Insights Premium Overview: Pricing Overview will help you learn about pricing trends.