The concept for a retail price monitoring service for the fresh produce industry started 12 years ago, when some lettuce growers wanted to keep tabs on the price being charged for iceberg across different supermarkets. Seeing an opportunity to help keep suppliers abreast of prices in a changeable marketplace, Market Intelligence Services was born, and over a decade later, has evolved into a multi-faceted establishment offering weekly retail price information on a wide range of fresh produce.
The company is a wholly-owned subsidiary of the Processed Vegetable Growers’ Association (PVGA) based in Louth, Lincolnshire. Each week it compiles 11 standard reports, which cover a variety of produce sectors, including fruit, vegetables, salads, organics, frozen, prepared and exotics.
But for businesses focusing their attention on more specific areas of the industry, it also offers a bespoke service. Companies can commission MIS to collate reports on whatever they choose and information undertaken and compiled is done so completely confidentially and for the sole use of the client.
MIS gathers prices from up to 12 major UK retailers, depending on the type of report, from supermarkets, convenience stores and discounters around the country. In turn, its clients range right across the UK supply base, from supermarket suppliers, importers, traders and agents, to small retailers, government departments and even trade bodies. “Over the years, the reports have become an important part of any sales managers information pack,” says Tebbutt, the company’s business development executive. “It is important to know not only what your customer is charging, but also what other retailers are charging.”
Tebbutt explains that where accuracy in collecting data is concerned, the company has found the most reliable and comprehensive approach to be a manual one. “We have a team spread around the country actually going into stores and writing prices down,” he says, “We don’t use websites as they can be inaccurate, and out of date. Also they don’t give origin and variety.”
The firm uses around 15 staff in total and, once collected, the information for a standard report is put into a spreadsheet and emailed to clients every Monday afternoon.
However, the company says it is looking at new ways to improve this service further.
“I joined in February and one of my first tasks was to get out and meet as many of our existing clients as I could,” says Tebbutt. “From those meetings it was felt that we could offer an improved service to clients. Not only are they interested in the price, country of origin and variety, but also there a number of other points of information that are relevant, for example: packaging type, size of fruits, more information on promotions, use of the Red Tractor logo, view on quality, shelf space, etcetera.”
MIS is currently exploring a range of ways of collecting this kind of information. One option would be to use a mobile data capture device to undertake the task electronically, thereby ditching the pen and paper and further reducing errors. “We hope to be able to offer customers a web-based system for accessing their information, and to make the data more ‘live’, rather than only collecting prices on a Monday,” Tebbutt explains. “We may also offer updates through the week, whilst recognising Monday is still very important.
“Better web presence should open up our services to more overseas clients, and to more new areas,” he adds.
While many in the industry put a lot of stock into the benefits of market data, the data-sceptical camp feels it an unnecessary cost with no tangible effect on profits. But Tebbutt says that for a nominal daily sum, businesses can get a valuable insight into the marketplace: “For a relatively small cost, this is really useful information that can make a big difference,” he says. “Suppliers must be aware of what is happening elsewhere in their product area, and our reports not only show prices but country of origin, and variety where relevant. One report costs from as little as £1 a day - a small price to pay for the amount of information.”
Since May, FPJ has been using the MIS prices as part of its category quarter pages - a feature designed to give an accurate snapshot of a specific sector over the last three months. Each week, MIS provides a price synopsis of a product within a sector, comparing the fluctuating prices across the major supermarkets from the previous quarter’s trading.
The business has clearly evolved from its days reporting prices to Lincolnshire lettuce growers, adopting a wider range of produce and increasing the number and type of reports over the years, but it seems yet more plans for expansion are afoot, in conjunction with the company’s renewed web focus.
It recently completed a market research project for a company supplying supermarkets whereby MIS employees actually went into stores to conduct face-to-face research with consumers. “With the supermarkets’ permission we were able to ask customers buying a certain product in store a number of questions relating to their purchase. Using our existing network of collectors we were able to do this for a relatively small fee and the information gathered was invaluable,” he says. “This is an area I think there is huge potential for, as it is vital that suppliers get closer to the end user.”
The company is also looking to expand into other areas besides fruit and vegetables. It already undertakes price monitoring on ambient goods, but could move seamlessly into sandwiches and meats in the coming years.
And looking even further ahead, Tebbutt says that he is confident this expansion will continue: “In five-10 years time, we will be offering supermarket suppliers a better product, operating in more product areas and doing more market research,” he says.
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