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Insight Report - For case study only

It is a case study report based on fictional senario
by

Elena W

on 17 March 2015

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Transcript of Insight Report - For case study only

What's covered?
Effective Promotions
- Objectives and key success factors
- Approaches and Output
- How does this project work?
- Additional Recommendation


Competitor Impact
- Approaches and Output
- Recommendation

Effective Promotions
Understand Impact of Competitors Opening New Stores
Approaches and Output
Manage the Project
Plan
Key Success Factors
Understanding incremental sales & Customer Penetration
Increase Share of Wallet of existing customers
Select best Deal Mix
Optimal deal depth
eg. 50%, 30%, 20%

Optimal promotion mechanic
eg. BOGOF, Multi-Buy, x% off

Optimal feature space
eg. Gondola ends, main aisles, fixture

Seasonality impact
eg. when is the best time to promote seasonal products? What time of the year does the product perform the best?
Right Promotion for the right customers - Mass Personalisation
- What product has the best reaction for a certain group of customers?
Utilise and maximise multi-channel promotions
Any categories perform better online/instore/mobile?
Winning in effective promotions
The objectives of this analysis is to help buyers understanding historical promotion performance and set up stronger future promotions.

Key goals for an effective promotion is to
- Increase Share of Wallet
- Achieve financial viability

Sales
Uplift%
Customer Penetration %
Strong
Rewarding
Cash Driver
Poor
Product
Catogory
Subgroup
By new customers
By existing customers
By customer segments
Share of Wallet
Waitrose customers' spend
in Waitrose
Waitrose customers' spend
in all the grocery retailers
Spend per visit
Price
Units
Visits
Existing product buyers
New customers
- 4 types of customers :
Partnership card holder
Loyalty card holder
Online customers
Others
estimate by external data/or segments
Compare the performance
Promotion period
Pre-promotion
Post-promotion
Product sales uplift
Subgroup sales uplift
% Basket size change (category/entire basket)
Volume uplift
# of new customers triggered promotion
% Loyal customers triggered promotion
Total sales during promotion period
% Re-purchase by the new customers
Sales driven by the new customers
Sales gap compare to the baseline sales
How long until sales return to normal after promotion?
Recommendation: Personalised highly targeted promotional information in email/online display
Indexing
Use category level index to find appealing group:

# of customers bought in promotion in one segement / total # of customers in that segment
total # of customers bought in promotion /total # of customers
- Objectives and approaches
- How do we manage the project?
- Outputs
Initial Brief &
Clarification
- Understand stakeholders' needs and wants
- Define the objectives of the project

Design the Project
Approaches
Data
Timeline & Milestones
RACI
Review the Plan with Stakeholders
- Confirm the project plan
- Receive feedback and make changes accordingly
Kick-off and delivery
- Deliver the project for the stakeholders and provide recommendations to the business
Review
With Clients:
- Have the expectations been met?
- Are there any improvement they want to see?
DO
Review

Internally:
- What are key takeaways from the project?
- Any efficiencies that could be improved?
- Pros and cons
Recommendations
Before New Store Open
New Store Open
First Month
After 3 months
Historical New Store Opening Impact
What was the impact of:
Different competitors (Tesco, Morrison, Aldi, Lidl, JS)
Different formats and sizes (Express or Superstores)
Number of the stores in the same areas
What new store campaigns do they usually run?
How long would the impact last and what is the long-term impact?
Distance to competitor's store vs. their impact
Impact by customer profiles:
Customer segments
Understand their Strategy
What campaigns are they running?
Adjust and review our strategy

Track the Impact
Sales
Visits
Basket size
Long Term Impact Evaluation
- Sales
- Visits
- Basket size
- Retention rate
- Campaign evaluation
Key metrics for impact:
# of visits
Store sales
By customer segmentation
By distance between customer location and competitors' stores

By customer segments
By distance between customer location and competitor stores
Output
Recommendations
Pre-impact plan
After understanding the historical impact of a competitor opening a new store, design competitive solutions/and marketing compaigns:

Lock-in promotions
Marketing campaigns for those easily-lost customers
Trade-driving communications to reward the best the customers
During impact
- Execute and enhance marketing activities


Post impact
- Win back the customers who shops in competitors' place by campaigns


Waitrose Insight Spotlight
- 16/03/2015 Elena
Understanding incremental sales & Customer Penetration
Increase Share of Wallet of existing customers
* Please note only customers who visited during promotion period would be counted. The number need to be robust.
Understand break down performance by channel
To maximise promotions for different channels
Utilise and maximise
multi-channel promotions
Right Promotion for the right customers - Mass Personalisation
Select best deal mix
If it become a recurring report, the next step would be to standardise and automate the report and teach the users
Breakdown
Identified customers
Uncommitted customers
Metric Breakdown
# of visits and total sales
Still shop with us,
with reduced spend
Stopped shopping
with us
Remain the same
or increased spend
Find out who are they?
If the impact is expected to be significant, we might need to consider doing store refresh, improving customer service level.
- Additional recommendation
Build comprehensive models to forecast sales/margin, cannibalisation, scenario modeling
up-market

mid-market

low- affluence

total
Bought in promotion
100

50

10

160

Total
200

200

200

600

Percentage
50%

25%

5%

26%
Index
1.87

0.93

0.18
Full transcript