Success with Trend Segmentation
Kesko is a major Finnish retail specialist operating in the Nordic and Baltic countries, Russia and Belarus. Net sales by the Kesko Group totaled EUR 9,5 billion in 2007. Kesko has approximately 2,000 stores in eight countries.
Success in the fast moving consumer goods business requires deep consumer insight and effective differentiation.
Kesko had the following objectives:
- to enhance its ability to identify the most profitable consumer segments and target the actions to them
- to deepen the supplier collaboration
- to improve the effectiveness of current Category Management processes
Kesko and Analyse² have shared the same mindset about Trend Segmentation and consumer focus since 2004. Analyse² developed and implemented full scale solutions to support Kesko’s strategic, tactical and operational goals.
Impressive results
Following the adoption of Analyse² Trend Segmentation, the results have been remarkably better in several areas. Strategy has become more aligned with business planning processes. The chain concepts are selected accurately based on target customer groups derived from Trend Segmentation. This logic is also further implemented in Category Management processes such as promotions, NPI and assortment planning.
Furthermore, Kesko’s collaboration with suppliers has taken a new course. A new service was launched to all suppliers to share customer information effectively. The service also contains tools and processes to create common language between Kesko and its suppliers.
The implementations in the operative level have also been a success. For example, Kesko has successfully used these methods on managing the promotions.
