Business Challenge
Assessment of right locations for launching a w product.
A leading food manufacturer was planning to launch a new product and wanted to identify the most attractive locations with maximum sales potential.
Situation
Lack of location-based insights
The client relied heavily on a blanket approach, which followed the new products in all the store locations as per the availability of space in the stores and demand from the retailer. This approach was not very effective and the result was lower than the cited rate of sales per store. To tackle this, the client was in a need of a more scientific method that could help them improve the efficiency of each store.
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Solution/Approach
Customer segmentation based product launch strategy
We implemented a customer segmentation based product launch strategy which included analysis of customer data to obtain customer profile, assess customer composition at a store level, and identify the store locations with maximum potential. This information was used to determine the list of stores for product launch and devise store level strategies.
Impact
Successful product launch with improved sales per store
The client was able to achieve a successful product launch by mapping the stores with maximum demand. Though the product launch was done across select stores, the client was able to achieve expected sales volumes, improved efficiency per store, and better inventory turnover.
