ISS recommended how gondola ends should be merchandised based on customer buying habits

Background

  • Retailer asked ISS to identify items bought in the same basket in order to create a promotional end based on customers buying habits
  • By displaying these products together, it would make it easier for customers to find products they purchase at the same time and drive basket size

 

Key insight

  • Confectionery buyers purchasing bags or blocks and chip buyers purchasing large bags of chips also buy larger size of drinks for entertaining or a night in
  • Medium and king chocolate bar buyers buy smaller drink sizes for a snack ‘on the go’ occasion
  • Coke and Coke Zero 1.25LT buyers are more likely to buy Sprite
    V Can 4 x 250ml buyers buy more than one flavour variant in the same shop

 

Outcome

  • Based on the key insights the recommendation was to create destination ends that are occasion based
  • Incremental sales growth for Sprite 1.25LT was 7.5% or $6.8k
    M&Ms, Maltesers, Smiths and Red Rock Deli had an increase of $24k (+6.2%) compared to an average of the previous 5 highest sales promotional periods
  • Cadbury 220g, Mars King Bars and Pringles had an increase of $118k (+14.5%) compared to an average of the previous 5 highest sales promotional periods

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