Consumers want convenience, and consumer packaged goods companies (CPGs) must find the winning combination of pricing and pack size to keep up with this demand. For example, consumers increasingly seek products that fit their on-the-go lifestyles, prompting brands like Campbell’s and Organic Valley to introduce smaller pack sizes. But rolling out new pack size options presents critical challenges, ranging from potential sales cannibalization to shelf space constraints and private label competition. How can organizations determine which pack sizes and pricing will both satisfy consumers and drive revenue growth? (more…)
With Google manufacturing cars, Tesla selling directly to the consumer, and Amazon selling non-genuine parts, the automotive industry landscape is quickly shifting. In order to succeed as the industry evolves, incumbent auto players must continually evaluate key business strategies, from pricing to marketing to new offerings.
Automakers are not the first to come up against industry disruptors. Similar competition has developed in other sectors, including travel, retail, and consumer goods manufacturing, and organizations are already using experimentation and innovation to respond. By learning from their strategies, auto OEMs can emulate their approach to refine key business programs and develop a competitive edge to profitably navigate disruption themselves.
U.S. car sales are declining, and with them, so is private car ownership. In response, many OEMs like Ford and GM are adapting by offering their own mobility services, like car- and ride-sharing programs.
As car manufacturers continue to roll out their own mobility operations, there are many potential implications to consider. The best way to determine which programs will truly drive profits is by conducting a test vs. control analysis on a smaller scale before widespread deployment, empowering OEMs to strategically implement new programs for maximum ROI.
Here are four key considerations for car manufacturers thinking about developing their mobility initiatives, with insights on how testing can help guide their decision-making for the best possible outcomes.
Would you pay three hundred thousand dollars for a ski-themed travel package?
Air Canada is hoping to attract customers who will. The airline’s extravagant ski package includes ice skating on the world’s largest outdoor rink, skiing in the mountains, and a dog sled excursion. As part of this deluxe offering, Air Canada is even converting a private jet into a “flying ski chalet.”
While this may be a particularly posh example, it addresses a question many airlines and hotel brands alike are asking themselves: How can we attract and retain high-value customers? Luxurious, one-of-a-kind offerings like Air Canada’s ski package are one strategy in the competition to engage with this group. Many airlines and hotels are also introducing programs like premium services and elite loyalty tiers to capture more high-value customers’ business. In the war to attract the most valuable customers, it’s key for companies to understand whether new offerings actually lead to increased customer spend and new business, or simply generate profits from existing customers who were already loyal to the brand.
“Get comfortable with days of inventory, not weeks,” said Home Depot’s senior vice president of supply chain, in The Wall Street Journal.
Home Depot is not alone in reducing inventory levels. Nordstrom and Ross have also joined the ranks of retailers trimming inventory in hopes of slashing backroom and distribution costs, minimizing markdowns, and decluttering stores. Yet retailers that reduce inventory in the wrong way will also mark down their profits. Before shifting strategies, retailers seeking to “right-size” their inventory must consider the impact of limiting inventory on sales both in-store and online.
Companies can pinpoint which assortments and inventory levels fit just right by testing new inventory levels and assortments in a subset of stores, and comparing their performance to that of similar stores.
The analytics landscape is evolving. As outlined by APT CEO Anthony Bruce in a recent Information Age byline, decision-oriented executives and budding analysts alike must be attuned to the latest developments to effectively leverage analytics to drive business value.
A recent study from Convenience Store News found that purchasing beverages is one of the most common reasons to shop at a convenience store. Capitalizing on their status as a beverage go-to, many convenience stores are investing in new drink programs to drive traffic into stores and encourage customers to spend more. As c-stores increasingly bet on beverages, they must carefully evaluate the considerations accompanying each new program.
Super Bowl Sunday is a major occasion not just for the two teams going head-to-head, but also for restaurants, particularly on the takeout and delivery front. This year, about 48 million people were expected to place some type of food order, presenting an opportunity for restaurants to score a touchdown.
Domino’s says the Super Bowl is the company’s third-busiest delivery day of the year, second only to Halloween and New Year’s Eve. The chain sells more than 11 million slices on game day – which is a 350 percent increase from a typical Sunday. Pizza Hut announced plans to hire 11,000 new employees ahead of the game. Delivery drivers nationwide were projected to clock about four million miles delivering Super Bowl orders.
As pizza players pour resources into programs like Facebook Messenger ordering capabilities and advertising pushes on social media, delivery strategies are increasingly top of mind across the industry at large. While the Super Bowl festivities have died down, how can brands refine their delivery programs for everyday wins?
Just three percent of the world’s hostel properties are located in the U.S. and Canada, and they account for only 10 percent of hostel revenue worldwide; as a comparison, hotel revenue in those markets is 28 percent of global revenue. Considering that the hostel industry generates $5.2 billion in annual revenue, it appears that there is room for growth in the U.S. hostel market. Hostels are already rising in popularity as an affordable option for accommodations, and redefining the conventional industry model.
In the insurance industry, gamification is gaining traction as a tool to engage policyholders and agents alike, channeling the fun of playing games – points, prizes, and all – into interactive educational platforms.
Incorporating game-design elements to appeal to individuals’ sense of competition and achievement has many useful applications across the insurance industry, from incentivizing agents to sell new products to enticing current and future policyholders to take a more active interest in their insurance investments.