Market demand plays a critical role in shaping business strategies and product development decisions.
Understanding the demand for products or services is essential for businesses to remain competitive and effectively meet customer needs. These are the main benefits it provides us:
Identifying market opportunities
Estimation of potential sales
Improve product assortment efficiency and profitability
Improvement in sales
In addition, it improves different strategies: sales, pricing, marketing, production, finance, etc.
But let’s see what challenges the demand analysis presents:
CHALLENGE-1: The initial and fundamental element for demand analysis is to obtain the maximum amount of data. It is relatively easy to capture demand signals that occur in our own search systems, but do we capture in our call center the demand signals that are generated in third-party search systems? Probably not, so we are already starting to lose very valuable data.
CHALLENGE-2: In order to understand this second challenge, we must explain the different levels of demand data that exist and on which we can base our analysis system:
Ideally, demand analysis should be based on all generated demand data, but most systems on the market are based on sales data, which means they lose precision.
In these cases, what is really happening on the market is not analyzed, but rather a part of the whole reality. I have an acquaintance who has an ISUZU Trooper III SUV 3.0 Tdi and who has been looking for the clutch flywheel for a long time. This part is no longer manufactured and therefore, no matter how hard you look, no one will sell it (unless it is in a scrapyard). Or it may simply be that the price of the product is not competitive and therefore it is not sold or is sold well below the demand. In all these cases, sales-based analysis systems will report that the demand is 0, but instead, the demand exists!
CHALLENGE-3: Another challenge that exists in many systems is that they lose visibility on many products because they do not have them in their range or in their own coding, or because they do not have a complete analysis structure, which does not allow them to associate the reference or product requested with any control element (for instance a vehicle definition for Industrial, Marine, ATV, Lawn & Garden, etc.).
For example, if we want to analyze the demand for the SUZUKI Alternator “31400-76G00” manufactured by DENSO “101211-2880” and mounted on several models of snowmobiles of the ARTIC CAT brand. Can anyone tell me, using their demand analysis systems, if it is interesting to have it in stock or not?
As we can see, demand analysis systems present multiple important challenges. To solve them all, advanced solutions are required that allow the analysis of demand to be addressed taking into account: all search systems, all generated demand and for any product existing in the market.
Factory Data has developed NEO system, a system that accurately monitors, captures and analyses market demand in a completely and easily way, solving all handicaps of current analysis systems.
If you want more information about NEO system please contact us.
