Leveraging shopper insights to inform item prioritization & promotion planning

As America’s grocer, Kroger is dedicated to its purpose of feeding the human spirit. To help shoppers find the right products at the right time, the Dairy Merchandising Team stepped in. They were seeking to understand which items drive the most trips and units to better position them on Ad and Display at certain times throughout the year. 

Additionally, some SNAP benefits would soon be changing. In an effort to continue delivering relevant savings to these customers, there was also a need to understand which items resonate most with very price sensitive and SNAP households. 

The Dairy Merchandising Team created a file that leveraged multiple data sources that allowed Category Managers to make more comprehensive, data-driven decisions. This file contained data around seasonally relevant items for upcoming periods and how important price perception was for each item. These items were categorized by Role and Intent in order to drive prioritization for Ads and Displays. It also incorporated various household segmentation to ensure all customer needs were considered in the process. 

The team has integrated this data fully into their planning strategy and have expanded to other departments. As a result of leveraging this data to push the most relevant products to consumers, the Merchandising Team expects to see a 1-3% uplift in promotion performance.