Identifying the “Hero Items” that attract customers and drive supermarket sales
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Background
Within the retail sector “hero items” or “destination items” are the standout products that attract customers to specific stores and drive additional sales, whether those are discretionary purchases or the weekly supermarket shop. The challenge for retailers is how to effectively measure performance to successfully identify these items, and what marketing strategy and tactics they should then apply to attract more customers and drive sales.
A supermarket chain wanted to learn more about how competitors identify and market their private label branded products. Specifically, they wanted to find out which were the products that drive consumers to visit these competitors’ stores over other supermarket options. Working with Fuld & Company, the client was able to gain insight on the metrics competitors used to determine which were their hero items and what was their go-to-market strategy for those items. The client was also able to determine the impact and importance this has on their overall store strategy.
Challenge:
As a recognized means to attract consumers to specific stores over other competitors, “hero items” potentially provide significant competitive advantage to retailers. The client wanted to benchmark how its competitors identified which items were driving consumers into their stores, and to understand the strategy employed to market them. By understanding the tools, and internal and external metrics other supermarket chains used to identify and then market their destination items, the client could better determine which of their own private label items they should build a go-to-market strategy around.
Approach:
Fuld & Company engaged with a wide variety of sources at peer companies to learn more about the metrics, tools, and marketing strategies competitors used for their private label items. Connecting with a variety of industry sources by leveraging our network, Fuld & Company was able to collect data on how competitors benchmarked these destination items, the marketing mix used, and the importance these items had for determining their overall strategies.
Result + Benefits
Through our analysis, the client gained a better understanding of how competitor supermarket chains benchmark the “hero items” that drive consumers into their stores, and the marketing mix applied for them. By defining what these items are and their associated marketing capabilities, the client is now better positioned to build a go-to-market strategy for their own hero items. Furthermore, Fuld & Company was also able to provide insight into the product development process for these destination items, where inspiration for these items comes from, and what benchmarking metrics are applied when they are evaluated.
How can your company benefit?
Fuld & Company specializes in providing competitive intelligence across various industries and functions. In this specific case, by providing insights that delivered a better understanding of “hero items” and the role they play within supermarkets. Insights can help companies more effectively understand their core products and develop suitable strategies to drive sales.
If your company is looking to better understand how to build a strategy around your hero items to drive sales, get in touch to learn more.
