F&B Retail

A 5-year old Pizza retailer in Singapore does all it can in terms of the traditional
marketing techniques, whether they be ATL or BTL. Major advertisements are done
through the different forms of mass media and multiple campaigns are executed to
target the different set of customers it has.
The retailer has 2 major operational businesses in Delivery and Pick-Up/Take-Away.
The retailer defines its set of customers by 2 methods:
1. Active and Lapsed All the active customers are defined as the ones who
have purchased in the last 1 month and the rest are lapsed.
2. Another classification technique is the one-timer customers and regular
customers.
The retailer is taking up the task using its data to target its customers more
effectively. A team of 3 Business Consultants is hired. No points for guessing that
this team is you.
The Management team at the Pizza retailer expects the consultants to
1.
2.
3.
4.

Point out the differences between their delivery and pick-up business
Provide understanding about all the 4 customer categories
Perform a Pareto Analysis to figure out the top customers providing 50% sales
Provide insights on converting the one-timers into regulars using the
purchase behavior patterns of regulars after the first visit
5. Find the best possible set of likely responders for a proposed campaign.
6. Suggestions on campaigns targeted for a particular category of customers
The daily transactional data (bills) at all the stores for a period of 3 months is made
available from the IT team.
To reach to the final output, the team set of with a task of figuring out the following
details from the data
1. Sales
a.
b.
c.
d.
e.
f.

g.
h.

Summary and KPIs (for the whole duration)

# Bills : Bill is a single transaction.
# Registration : Registration is the first transaction of customer
# Visits : Visits are Unique # of days on which customer visits. If a
customer makes 3 bills on the same day, it is still considered as 1 visit
# Sales, Avg. Bill Value, Avg. Monthly Bills, Avg. Monthly Sales
Avg. Recency : Recency is the days since last purchase for a
customer
Avg. Latency : Latency is the average amount of time
(days/months/years) a customer takes to visit the store again.
Example: A value of 15 indicates customer visits on an avg. once in 15
days
# Repeat Bills : Repeat Bills are the bills made by the customer after
his/her first visit
% Repeat Bills, # Repeat Sales, % Repeat Sales

2. Key trends
a. Month on Month # Registrations, % Bills, % Sales, % Repeat Bills, %
Repeat Sales
b. Day of Week % Bills, % Sales
c. Time of the day % Bills, % Sales
The first 4 requirements were analyzed using the above set of definitions.
The retailer had run a campaign previously where it targeted exactly half of its
current customers. The rest half were to be targeted in the proposed campaign. The
customers targeted as well as the responders of the previous campaign are marked
in the transactional data available from the IT team.
The marketing team had heard of some regression analysis, which could help them
identify the set of customers from the current data who are most likely to respond in
the proposed campaign. The reason for doing this activity was to reduce the
communication cost, by chopping of the customers not likely to respond, thereby
improving the overall RoI for the proposed campaign. The 5 th expectation from the
Consultants, as listed above, centers around this activity.
As a last activity, the consultants also had to propose new campaigns that would
cater to different categories of customers and other recommendations/insights that
can be implemented by the retailer to improve the business.
ADDITIONAL POINTS
1.
2.
3.
4.

Stick yourself to the data provide by the IT Team.

In case you need to assume any relevant data, clearly mention it with source.
The behavior of customers remains similar over both the campaigns.
Other details like duration