efficient consumer response (ECR)

Efficient Consumer Response (ECR) is a corporate strategy for optimizing the value chain in retail. The aim is to establish a cooperative partnership between manufacturers and retailers, optimally satisfy customer needs and increase customer satisfaction. This approach is designed to eliminate inefficiencies that occur in the value chain between manufacturers and retailers.

The ECR strategy is based on several approaches that encompass the aspects of marketing and sales, logistics and administration, and take into account the optimization of product launch and promotion, assortment and reordering.

Functional chain of Efficient Consumer Response (ECR)

At the beginning of the value chain is the optimization of the product launch, the Efficient Product Launch and Introduction( EPI). This strategy is aimed at developing and launching the product so that it has characteristics in line with the market and is introduced using appropriate marketing methods.

A strategy that also belongs to marketing can be seen in the effective promotion. In the ECR strategy, this is Efficient Promotion( EP), which is used to optimize sales promotion activities. With the efficient assortment policy, the Efficient Assortment( EA), the assortment and the sales area are optimized and with the Efficient Replenishment( ERP) the demand. This latter strategy aims to optimize replenishment and the capital required.