Make Way for Artisan Bread - IRI

  • Insight
  • Innovation
  • Impact
 
IN THIS SECTION
Insights
 
 

Featured Headlines

White Papers & Case Studies

CUSTOMER SUCCESS STORY
Make Way for Artisan Bread

Manufacturer To Earn $6 Million from New Distribution

The Challenge
In an attempt to gain distribution at a key retailer, a leading packaged food manufacturer needed proof that its affluent consumer would represent a significant portion of the retailer’s shoppers. Unconvinced that the manufacturer’s artisan product line would appeal to its typically value-conscious shoppers, the retailer initially denied shelf space. But, the manufacturer persisted and turned to IRI to provide the analytics-based insights to highlight retail store locations with less value-conscious shopper profiles.  

Bread


The Approach
 The packaged food manufacturer used IRI’s ShopperSights™ segmentation solution to demonstrate the product line’s appeal to the retailer’s core shopper groups and identify high-potential store clusters among the retailer’s locations. ShopperSights applies accurate household and store-level predictive attribute modeling to quantify opportunities based on actual demand.

Utilizing ShopperSights, the manufacturer built a profile of the product line’s target consumer, derived from life stage, income, family size and other demographics and limited to consumers whose spend rate index exceeded 120.  In the next analysis, the manufacturer compared these key demographics to the retailer’s shopper profiles at each location. This revealed that a surprising number of stores, 53%, had a base of affluent shoppers who match the artisan baked goods consumer profile.  Of these stores, half had exceptionally high indices of this consumer.

The Results
With the insights in hand, the manufacturer presented a detailed analysis to the retailer, proving the product line’s relevance to the retailer’s shoppers. Surprised, yet impressed, by the results, the retail buyer authorized distribution of the manufacturer’s product to 20 distribution centers. Each center serves up to 50 stores, netting a potential 1,000-store gain for the manufacturer. The packaged food manufacturer valued the first year’s shipments alone at $6 million.

Client Benefits
The packaged food manufacturer gained distribution at a valuable retailer. Converting granular, store-level insights into specific, actionable recommendations, the manufacturer maximized the opportunity for success by targeting high-opportunity shoppers at retailer locations most likely to attract these shoppers. This precision and new understanding of actual shopper behavior helped solidify the relationship between the manufacturer and retailer by creating a mutual monetary benefit.

 

Tell Me More
* Required