-
Situation
Major pub plc was rapidly rolling out a “retail” (managed) model of pub management but results were below target.
Diagnosis
Pubs were not routinely being provided with the correct proposition and pricing based on location and consumer wants. Existing segmentation not fit for purpose. Wrong teams were taking decisions with poor information.
Solution
Create a new segmentation based on consumer wants. Generate new propositions (food, drinks range, service model, pricing) for each segment rooted in consumer research. Shift accountability for deciding the appropriate proposition for each pub to the team with the fact base (RACI work).
Results
Like for like sales and profits rose by 7%.
Keys
Robust segmentation. RACI work to realign accountabilities for developing propositions and allocating them to pubs.
-
Situation
FTSE 50 drinks business: company’s biggest brand’s growth had stalled.
Diagnosis
Most markets were declining with their aging consumer base. Company was nervous about changing its “crown jewels”.
Solution
Reposition brand to recruit younger consumers whilst not alienating existing ones. Identify high volume and value drinking occasions for younger consumers.
Brief some ethnographic research to fundamentally understand drivers of consumer behaviour.
Put the resultant “deep human truth” at the heart of a new brand communications campaign, with revised media footprint.
Adjust distribution to upweight emphasis on high value on-trade outlets.
Collaborate with markets to persuade them to adopt the new strategy and advertising and focus on execution.
Results
Brand share rose by 1% in Europe, 1.6% in Lat. Am.
Keys
Robust segmentation.
Realignment of roles and responsibilities between central and local marketing teams.
Ensuring the local marketing teams felt empowered and accountable.
Reassurance of all stakeholder groups about validity of strategy.
-
Situation
Major mobile operator was behind revenue and profit targets with high churn driving up costs.
Diagnosis
Multiple causes: lack of loyalty propositions, suboptimal investment in retention, misaligned objectives across functions.
Solution
Develop propositions that reassured consumers about value. Refine investment framework to enable economic retention of high churn risk customers. Ensure all relevant stakeholders had appropriate churn related objectives that were suitably cascaded.
Results
Churn fell from 33% to 14%.
Keys
Single most powerful enabler was realigning the organisation and getting buy-in to shared and cascaded churn objectives.
-
Situation
International shopper loyalty business had almost exhausted its shopper reward pipeline (most items had significant development and sourcing lead times) which severely impacted its ability to sell and deliver effective loyalty programmes to retailers.
Diagnosis
NPD process for shopper rewards was informal and inconsistent, reward choice was subjective, decision-making authority was unclear resulting in rewards not always aligned with shopper needs and long product development times.
Solution
Introduce shopper insight to inform the development of the shopper reward range and to test them. Develop and introduce formal and streamlined NPD process with appropriate involvement and communication across teams. RACI work to have single point of accountability.
Results
NPD output rose by 82%, contributing to sales increase of 8%.
Keys
Introducing effective process, and selling the benefits of it to get buy in. RACI work.
-
At a major South African brewer: undertook customer profitability analysis and allied it with segment growth to highlight biggest opportunities for margin growth. Sales and customer investment resources were reallocated. Customer margin grew by 2.7%
At a large international travel firm: identified which service offerings and segments generated the highest return on assets. This enabled a change in marketing and investment focus to achieve a 6% increase in passenger retail revenue and 7% increase in ROCI