Relisting Prevents £1m Spend Leaving The Category
A British food company wanted to relist a Thai cooking sauce but needed dunnhumby insight and data to support its plan to a global grocery retailer. The food company had been criticized in the past by the retailer for producing unactionable, data-heavy presentations. dunnhumby created a one-page report that incorporated a relevant, category focus.
The one-pager from dunnhumby gave the retailer clear and tangible reasons to relist the product. The report revealed:
- Thai product customers are very loyal and didn’t switch their spend as a result of the delist, but rather moved it entirely from the category (and probably the retailer) costing £280k in just 13 weeks
- Thai cooking sauces are shopped in a different manner to the rest of the category, which emphasized the role of the food company’s sauce as a leading brand
The insight from dunnhumby got the Thai cooking sauces back on the retailer’s shelves. Not only that, the food company was invited back to the retailer’s Merchandising Center to re-establish a plan for the sub-category.
Bringing the brand’s Thai sauce back to store shelves proved dunnhumby’s predictions correct and demonstrated how loyal the customers were to the sauce:
- Initial category decline of £280k halted, preventing further category damage
- Customers needs were readdressed as a result of specific understanding of Thai products within the wider cooking sauces category
- A sustained dispute across the rest of the year would have cost the grocer £1.1m in lost category spend; instead, the relationship has stabilized and the food company has a greater influence on category decisions