Client Profile
Our client is a leading international grocer, looking to expand their market reach by entering the fine wine and dining segment through a multichannel sales model.
Challenge
The client sought to project an image of a ‘rich and deep’ wine cellar while maintaining minimal pre-purchase stock holding. They aimed to increase group sales by entering this new category and promoting sales of premium delicatessen products. Additionally, the client wanted to tap into an unexploited customer segment with higher disposable income through their multichannel sales model.
Solution
Our solution involved a detailed analysis of customer and relevant website traffic data, allowing us to target specific segment groups. We used geo-mapping of customers based on postcodes to streamline operations.
To attract, engage, and build a customer pool for fine wine, we built a social media targeting tool. To accommodate minimal stockholding of fine wines, we created an agile fulfillment solution. Additionally, we cross-matched wines with fine foods to offer personalized deals to customers.
Results
The strategy resulted in the rapid building of a new customer pool, supporting wine offtake and incremental sales of food products, reaching a customer base of 1 million. The synergistic promotions led to a 7% increase in sales of high-value deli products.
A novel introduction was the “Fine Food and Wine” subscription sales club, which became a new channel in addition to existing store sales (home delivery and pick-up-at-store).
Conclusion
This case study highlights the strategic use of data analysis, geolocation, and social media in expanding into new market segments. By pairing an innovative stockholding approach with tailored customer offers, the client was able to successfully break into the fine wine and dining market, attract a new customer segment, and boost sales.
