Predictive Analytics CPG Ethnic

CPG brand uses predictive analytics to revamp in-store promotions and increase market share

 

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The Opportunity

A major US-based company in the beverage space had been sustaining negative growth among the Latino market within the southwest region.  While the Latino market had been steadily growing, the company’s share and revenue for that group were declining.  The brand needed to reverse this trend and improve its market share within this demographic.

 

The Challenge

The company had previously provided co-operative marketing funds to grocery store chains to help alleviate costs with end caps and point of purchase (POP) displays. The company saw modest success with its in-store promotions, but wanted to improve its marketing ROI. As a result, the company engaged Speedeon Data to perform a data and market analysis to improve future co-op efforts.

 

The Process

Speedeon Data first assembled demographic data and business data centered on grocery stores.  Speedeon’s in-house data sciences team leveraged ethnic demographic data to create a unique data element indicating Latino habitation compared to other ethnicities within a particular region (in this case at the ZIP+4® level).  Both Latino demographic data and business data were gathered with a special emphasis on grocery stores.

Both data types were further used to plot additional grocery store locations in the Southwest region. A Latino data score was developed based on the locations of these individual grocery stores. The resulting output was shown in both tabular format and as a heatmap.

 

The Result

Valuable insights were gained from the analysis, including intelligence regarding the poor performance of prior in-store promotions. The company had previously provided marketing co-op funds at the grocery chain level, which then determined how and where to deploy promotional tools among the individual stores.

As a result of the analytics work done by Speedeon, the beverage company changed this practice and began distributing co-op funds and in-store promotional requirements at the individual store level.

 

The resulting program saw some significant benefits:

  • Co-op funds measurably drove purchases within the Latino market compared to the general market.
  • Co-op dollars delivered a greater return when targeted at a store level instead of a grocery chain level.

The beverage company has since launched a new program leveraging these insights and continues to see success with its in-store sales.

ZIP+4® is a registered trademark of the United States Postal Service.