Understanding the impact of a shelf reset on household spend

Challenge

Kroger’s market share of big pack cereal was declining. To increase awareness of big packs and drive sales, Kroger moved big pack cereal to eye level, and needed to understand the impact on the total category and by size segments.

Solution

The Kellogg Company offered to help Kroger dig into this analysis. In order to understand the impact, Kellogg leveraged 84.51° Stratum New/Lost/Retained reports to execute a pre- versus post- analysis and determine how households had changed their spend in total and by size segments.

“As a Team we were able to uncover category deflation through the data, that led us to conduct targeted 84.51° consumer research that confirmed our need to adjust our promotional strategy and on shelf availability.”

Michael Moon & Jennifer Johnston, Senior Managers Category Management · Kellogg Company

Results

New/Lost/Retained analysis showed that the percent of new and retained households had increased for big packs, but had decreased for all other size segments, leading to a higher percent of lost households for the category overall.

Moreover, it showed that spend per household decreased among retained households in the post period versus the pre period, as well as that new households were not spending as much as lost households.

The net learning was that while big packs sales were growing, the total category was deflating, therefore the shelf reset was not delivering the desired performance results. Kellogg Company dug in further with 84.51° data and consumer research to identify the need to adjust the category promotional strategy to align to the new shelf arrangement by size segments to increase household penetration, shorten the purchase cycle, and increase spend per household.

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