HAVI’s Business Analytics team helped a quick-service restaurant’s (QSR) marketing team to identify the most effective marketing tactic to drive sales of their new product nationwide...
Quantitative analysis helps a quick service restaurant (QSR) chain identify the single most effective marketing tactic to drive sales of a new product nationwide.
A QSR chain was launching a new product and encouraged franchisees to supplement the national marketing plan with local marketing tactics. Thousands of franchisees across the United States, excited about the new offering, immediately, and in record numbers, began implementing local promotional tactics to drive sales. Tactics included sampling, bundling, price discounting, giveaways and more across a variety of mediums – from social media and direct mail to radio advertisements.
Corporate marketing was thrilled with the franchisees’ response, but struggled to determine which local marketing tactic was
the most effective in driving sales and would best support the upcoming national promotion of the product. The chain planned to launch subsequent new related products and would develop a corporate marketing plan for each introduction based on the success of the latest launch.
The QSR corporate marketing team sought help from the Business Analytics team at HAVI. HAVI has deep expertise in the QSR and foodservice markets, and their breadth of analytics experience across a promotion’s lifecycle, and their ability to manipulate very large, complex data into meaningful insights is unsurpassed.
HAVI’s business analytics group gathered data on a daily basis from each of the chain’s 10,000+ restaurant locations and processed this information quickly and efficiently to derive the insights that would be most helpful to the chain’s corporate marketing team. HAVI analytically dissected each of the components surrounding the various local marketing offers, including isolating the effects of television advertising and adjusting for seasonality, geographic variation and the type/length of tactic, to determine the best offer. They also quantitatively analyzed each local tactic’s incremental sales contribution to the product line and overall category to determine the specific offers that increased sales the most.
HAVI was able to determine that one particular tactic increased sales of the new product by 180 percent, whereas others generated only 3.5 percent sales lift. This level of analysis and detailed insight enabled the chain to make an informed decision about which marketing tactic to employ for a national launch
of the product (and subsequent similar product launches) as opposed to simply acting on gut feeling about what might be the most successful tactic.
• Increased sales – HAVI’s Business Analytics team identified the specific marketing tactic that increased product sales by 180 percent and category results by 115 percent.