Geomarketing applied to product launch

One of the most important commercial levers for mass consumer-oriented companies is promotional management at the point of sale. This is because a good marketing campaign can influence consumers; however, it is sales that count when it comes to company results.

This was quite clear to the Trade Marketing department of a leading global manufacture of dairy products. It decided to introduce the philosophy of geomarketing via data enrichment at its points of sale, with information from the Habits database. This was for the management of its promotional campaigns, for both new product launches and for updates of more established products.

The challenge

To identify outlets with a greater presence of target shoppers to “customise and design” a targeted promotional strategy.

Every product or service is designed for a specific target, and they are not uniformly present everywhere. That is, high income families are located in different areas to those of low incomes, they have different consumption habits and access different outlets. And this happens in every type of household.

The project

From information provided by Habits and the market research techniques and methodologies, along with geographic information used by AIS, the number of families (targets) with the desired traits in the sphere of influence for any geographical area can be found. In this particular case, the locations of interest were all sales outlets where the product from the dairy manufacturer was distributed. This allowed a classification or ranking of retail outlets from high to low with the presence of the target consumers.

The result

The classification allowed the company to redirect its strategies for promotion, stock and communication, by focusing efforts on “hot” retail outlets (with a high presence of the target shopper), and a greater attention to the shopper at these points to ensure the penetration of the promotion and product, thereby reducing costs at “cold” outlets (with a low presence of target shopper).

From an economic viewpoint, this new approach achieved 500% ROI, after comparing results between outlets classified with these techniques and those unclassified outlets (using conventional techniques).