Store Level Segmentation for CPG
For this iconic beverage company, basic outlet/store-level segmentation could not provide the level of differentiation required to achieve assortment, inventory, and shelf planning objectives.
- Daugherty helped develop an entirely new strategy, approach, and three year roadmap for customer, store, and outlet level segmentation based on advanced, multi-dimensional, dynamic segmentation leading practices.
- Over three-dozen outlet-level characteristics are used to build optimal FMOT plans for over ten different merchandisable differences.
- Simulated how insights would drive both new actions and business results, and planned and launched a pilot executed across 65,000 stores.
- Captured new data integrated with sales performance data, merchant data and syndicated data and established a phased plan to move from static segmentation through to dynamic and predictive analytics.
After roll-outs to over 100,000 outlets, a several percentage gross margin increase has been realized by only addressing a portion of the merchandisable differences/opportunities including:
- More targeted sales programs
- Optimized pricing and trade promotion spend
- Improved return on equipment investments/placements