Scroll down to read about how New World lowered marketing costs by six digits through a circular optimisation.

New World

"Datamine provide answers to help us make better, more informed, decisions.  Personally, I like to have all the facts, and, through our work with Datamine over many years, we have seen things that have led us to make different decisions than we would if we’d just gone with our ‘gut feeling’.  Datamine provide us with evidence of what is actually happening in our business.  This can be different to what we might believe and, at the end of the day, helps us to be more effective."   New World Brand Champion, Foodstuffs Auckland Ltd

 


 

THE CHALLENGE

New World wanted to improve its advertising effectiveness by reducing the number of circulars distributed – without impacting store revenues.  The objective of the project was to answer the following questions:

  • Did the circular draw in new customers?
  • Did those new customers return
  • Did high value, loyal customers buy the product on special?
  • Did the promotion grow market share? 

THE SOLUTION

Transactional and Census data was extracted to calculate the profitability of each geographical meshblock.  Unprofitable meshblocks were identified by comparing the profit from the sales in the meshblock to the cost to distribute circulars.

The impact on New World was assessed by the use of control groups and testing the approach in similar catchment areas.  Profitable meshblocks were then converted into distribution walks.

THE RESULT

Following the results of the analysis, New World decided to stop delivering circulars to unprofitable meshblocks in order to focus on valuable areas.

Distribution at the time was systematically reduced, with six digit cost savings in the first year and no adverse effects on chain revenue.

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