Grocery store chain wants to better understand local markets before and after new store openings

Challenge

A high growth grocery chain focused on healthy food and wellness products wanted to understand how well elements of their overall philosophy and specific product offerings (organics, prepared foods, wellness products) would appeal to customers in new markets ahead of several new store openings. The goal was to optimize new store openings based on customer input and then evaluate new store sales and brand awareness and equity several months after the opening to see how effective their strategy had been. They then wanted to conduct post-opening research to evaluate how successful they had been in increasing awareness, consideration, and liking for their brand.

Action

The studies analyzed  market share of competitors ahead of new store openings and identified the factors and features most important to grocery consumers in that market. Special attention was given to the needs and preferences of consumers who shopped target competitors from who the new brand wanted to take share. Pre-opening feedback was used to select the right mix of products available to customers and to hone marketing messages and offers to encourage trial. Post-opening studies were used to identify overall brand awareness, consideration, and liking among grocery consumers in the new market. 

Result

The brand was able to anticipate challenges to meeting sales goals for new store openings and make needed modifications to the marketing plan by location. Post-testing consumer sentiment and market share helped validate marketing strategies and key insights were incorporated into strategies for subsequent store openings. New store openings broke existing sales records and the brand also saw healthy increases in brand awareness and consideration among grocery consumers in each market.