Retailer occasion-based strategy

  • Europe
  • |
  • Norway
  • Revenue growth management

Impact

Reversed negative sales trend evolution of -10% in three months and generated a growth of 15% in 18 months, through innovative occasion-based segmentation.

Issue

The convenience channel used to be the dominant channel, as supermarkets tended to concentrate in high-density urban areas. But in recent years, supermarkets have initiated aggressive expansion in all territories, offering significant discounts. The client, a convenience channel chain, experienced both a substantial reduction of sales and pressure on margins.

Approach

The analysis began by enlarging the competitive market field to include channels beyond the convenience channel, but which competed with our stores for the same consumer occasions. Later, an in-depth market analysis was performed that included shopper interviews, shopper traffic audits, store audits, and store employee interviews. This outside-in approach made it possible to perform a pertinent occasion-based segmentation, to identify the key success factors in each occasion, size the potential of each segment, and determine the client’s position in each segment.

Outcome

A plan was elaborated to capture the most attractive occasions, including offer (product, price, and promotional activity), experience (layout, merchandising…), and organizational implications (sizing, selling activities, and support from headquarters).