Retailer occasion-based strategy

IMPACT

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

THE ISSUE

The convenience channel used to be the dominant
channel, as supermarkets tended to concentrate in high-density urban areas. But
during recent years, supermarkets have initiated an 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, including channels beyond the convenience channel, but which
competed with our stores for the same consumer occasions. Later, an in-depth
market analysis was performed which 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, to size the potential of
each segment, and to determine the client’s position in each segment.

OUTCOME

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