Leading supplier supports retailers with an improved category understanding, driving targeted and customer focused insights

Below you can find highlights from a recent case study exploring how Imperial Tobacco is supporting its retailers by using Galleria’s behavioral clustering software. Read the full case study here.

The Challenge
A recognized global leader and the largest tobacco manufacturer in the UK, Imperial Tobacco works in collaboration with a variety of retail partners across 160 countries worldwide, offering a portfolio of successful brands including Lambert & Butler, JPS, Golden Virginia and Gold Leaf.

In a bid to remain competitive, Imperial Tobacco realized a key requirement in the next stage of its journey; to become more customer focused by adopting a more granular and automated behavioral clustering approach.

A Partnership for Success with Behavioral Clustering
In June 2013, Imperial Tobacco began working with Galleria, part of RELEX Solutions, and the leading provider of retailer and manufacturer category optimization solutions and consultancy services.

Implementing Galleria’s Behavioral Clustering Software gave Imperial Tobacco the ability to efficiently create store and category level clusters based upon consumer buying behavior, identifying like-stores and providing fast, actionable insights tailored in-line with the strategy and objectives of each retailer.

Eliminating the need for weeks’ worth of manual data analysis and complex spreadsheets, Galleria’s Behavioral Clustering solution provides Imperial Tobacco with the ability to automate performance based analysis for each retailers’ store estate and across all channels.

Imperial Tobacco

Seeing the benefits…

  • Competitor Insight
  • The solution provides valuable insight into the competitor clustering model and is able to quickly highlight a missed cluster opportunity where there were clear differences in customer purchasing habits in comparison to all other clusters.

  • Targeted Assortment and Space
  • Galleria’s Behavioral Clustering Solution was used in collaboration with an existing key multiple account to gain a better category understanding and to illustrate the similarities in customer purchasing patterns with targeted store groupings. The account was so impressed with the findings that they progressed with a trial of one cluster, driving better targeted assortments and planograms. This gave such successful results that the cluster solution was implemented across all stores and the planogram volume was reduced from 800+ down to 75.

  • Improved Operational Efficiency
  • Using Behavioral Cluster Planner, Imperial Tobacco were able to reduce the overall category cluster count for a large retailer from 12 clusters to 6. This resulted in a much more manageable category to maintain, simplifying the overall planogram count and achieving the retailer’s objective for a more sustainable yet targeted approach.

  • Improved Customer Understanding
  • Imperial Tobacco were able to cluster the entire independent store estate, building cluster profiles and gaining actionable insights in just a couple of days. Twenty-eight distinct clusters were identified, showing clear variation in customer purchasing patterns enabling Imperial Tobacco to tailor assortment and planogram recommendations in-line with demand and arming field sales reps with valuable and credible customer insight for improved partnerships.

“At Imperial Tobacco we put our retailers first and support their growth with an improved and dynamic category understanding to meet their needs” said Dean Elson, Distribution and Availability Executive at Imperial Tobacco, “Galleria’s industry experience and approach made this a natural progression for Imperial Tobacco to fulfil our needs with the ability to rapidly provide customer focused insights.”

The Future
As for the future, Imperial Tobacco continue to leverage the benefit of improved customer insight with targeted clusters and better credibility with retailers by offering targeted category management advice in-line with customer demand.

Read the full case study: “Imperial Tobacco – Improved collaboration with a behavioral clustering approach”