We have designed a comprehensive project, within the framework of which we have conducted a research measuring consumer behavior, brand recognition, formed a conversion model for supermarkets, and created attraction and retention maps.
METRO is a group of retail companies that operates the third largest retail chain in Europe and the fourth largest one in the world. It was founded in 1964 in Germany.
CLIENT: METRO
FOUNDED: 1964
SPHERE: Retail
REGION: Europe, Asia, Africa
COOPERATION SINCE: 2018
WHAT IF, BY INCREASING THE PRICE BY ONLY 10%, IT AFFECTS THE VOLUME OF SALES AND REDUCES THE NUMBER OF CUSTOMERS?
What objectives did the client have?
A client has approached us to solve several problems:
- assessment of their position and brand recognition in the market,
- testing the hypothesis about the dependence of changes in the volume of purchases on the price in the context of specific categories of goods.
“How can just 10% price increase affect sales volume and decrease the number of customers?”
Tasks
- To conduct analysis of the popularity and frequency of shopping centers attendance among families in cities with METRO stores.
- To analyze customer satisfaction by the following characteristics:
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- stability and attractive price;
- customer satisfaction with the price of key products;
- satisfaction with the assortment;
- discounts and promotions.
- Conduct an assessment of purchasing behavior with respect to key products to shopping centers while reducing or increasing prices by 10%.
What kind of research have we made for the client?
We have created a comprehensive project. Within its framework we have conducted an investigation, measuring the following categories:
- Shopping behavior in the supermarket;
- Brand recognition;
- Knowledge of supermarkets with a hint (by name);
- We have analyzed brand awareness and supermarket attendance;
- Analyzed brand recognition and visits to METRO by city;
- Formed a conversion model of supermarkets;
- We have created maps to attract and retain customers;
- Determined the choice of a supermarket: reasons, important factors;
- Identified preferred and rejected supermarkets;
- Analyzed price perception;
- We have evaluated the impact of positive and negative pricing policies.
Based on the research data, we have also determined the position of METRO according to the parameters: Knowledge and Attendance, Attractive and Rejected supermarkets, Factors of visit and choice, Satisfaction.
What benefit have the client got?
We have developed and conducted a comprehensive design study to solve the client’s objectives.
Value:
The limit of price elasticity is determined.
Specific recommendations are provided for:
- Pricing and categories;
- Risks of consumer outflow when prices for specific goods are changed;
- Brand perception and customer base loyalty structure.
“As a result, METRO has received recommendations from us on retaining the customer base and critical drivers for the growth of the base.”
In addition, hypotheses on the importance of price as a stimulating factor for different categories of customers were tested.
