Success story

See details of how Newtail helped the Zona Sul supermarket increase sales with Retail Media strategies.

About

The Zona Sul

Zona Sul is a supermarket chain that operates in the city of Rio de Janeiro and is the 58th largest retailer in the country. It has 44 stores, 40 of which are distributed in neighborhoods where consumers with the highest purchasing power in the capital of Rio de Janeiro are concentrated. In addition, it also has a unit in Angra dos Reis.

Challenge

Reduce sales disruption

To monitor the evolution of the sale of products at the supermarket, Zona Sul uses the Newtail data panel.

At the beginning of 2023, it was possible to visualize through the tool a 316% growth in cold energy drinks in 2022 (compared to 2021) at the Zona Sul supermarket, which drew the attention of the entire team to the importance of cold execution.

How we help

Opportunity to increase revenues by more than R$400,000

When analyzing the disruption data, the retailer contacted the leading energy brand, as there was a challenge in relation to the rupture of these items in the store. Because they received a smaller space and had an increasingly rapid rotation, the cold shelves were out of stock in a short time and the replacement could not cope with the rapid rotation of the refrigerators.

Given this scenario, through the Newtail platform, it was possible to estimate a revenue opportunity of over R$ 400 thousand reais per year when adjusting the Zona Sul supply parameter.

Strategy

Promotion of cold items at the same price as regular items

Upon identifying the problem, the leading energy drink company and Zona Sul decided to create an activation campaign during Carnival 2023 in the city of Rio de Janeiro. On that date, the physical stores of the supermarket receive a greater flow of consumers because they are on the route of several blocks of Rio de Janeiro. So this was the right opportunity to sell a refreshing drink to the revelers.

Zona Sul and the brand joined forces to increase the frequency of supplying refrigerators with the company's products, including increasing the availability of flavored items in the portfolio in addition to the traditional flavor.

But just increasing supply wouldn't be enough to provide a complete shopping experience. Thinking of offering the best to their customers, iced items were promoted to be sold at the same price as regular items.

Result

Market share increase by 17 p.p. and 20% sales growth

➡️ +20.6% increase in sales in February compared to the previous month (already removing the effect of the natural peak of Carnival).
➡️ +17.6pp of the brand's market share in the energy category + 3.5pp of share for the sugar-free versions of the product.
➡️ + 5.5pp share for the flavored versions of the brand.
➡️ + 23.8% average ticket increase in the category.
➡️ 21% of energy drink consumers switched from an activated brand to the iced product.

In addition, the energy brand discovered, through the Newtail data platform, that the shopper tends to take an extra unit of energy with the same purchase when the cold drink is at the same price as the regular one.

Post-action

Customers loyal to the brand

The results were great and left the teams satisfied, but it was necessary to go further and monitor the behavior of this impacted consumer after activation. After the appropriate time for seasonal consumption, the doubts were:

➡️ Will the consumer who took the brand's product continue to buy items from the same industry?
➡️ Will customers continue to buy more units due to the temperature of the beverage?

After the activation ended, this migrated consumer became loyal to the brand as it passed from 68% (pre-activation level) to 74% of market share (post-activation level) within the energy drinks category in the Zona Sul even after the end of the campaign.