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Client: A $4M/yr retail "pet food warehouse" retail store chain with stores in adjacent cities. The stores carried a wide variety of pet food and pet accessories, not only for common household pets, but for larger animals and "exotic" animals as well. |
Challenges: The company was expanding by opening new stores in cities not far from its original store location. Resources were limited and advertising, catalog and promotional costs were high. The company focused their promotions very specifically but were frustrated that the promotional campaign results were lower than expected.
Solution: Management Analytics Group analyzed the company's point-of-sale transactions and developed a customer transaction database from each store's cash register data. We discovered that many customers shopped at more than just the store closest to where they lived. Further analysis revealed that the stores had very different sales profiles even though their inventory was similar. Management Analytics Group discovered that many customers chose the store they visited more upon the basis of the kind of pet(s) they owned than upon the location of the store.
Results: Management Analytics Group's new insights led the company to leverage their customers' perception of "store specialty." They refocused their promotional efforts using product preferences rather than geographic location. The company also shifted their advertising and inventories to take advantage of each store's "specializations." Sales grew substantially even as new national-chain competitors were opening stores in their market area.
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