Drive digital transformation for your brand in the food industry with consumer insights, digital marketing and analytics to increase new customers and sales.
This innovative food brand was conceived to revolutionize salads and redefine fast food. However, the onset of COVID-19 dealt a severe blow to the food retail industry, and this brand was not exempt from the challenges. They grappled with dwindling profit margins, necessitating the closure of 25% of their outlets. Additionally, the burden of ongoing rental costs and delivery platform commissions made it challenging to sustain operations, even with subsidies. In response, they pivoted from selling salads to offering ingredients and meal kits to cater to the WFH crowd. However, this transition fell short, with the website experience falling below par and weekly orders languishing in the single digits.
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Strategy
ADA conducted a comprehensive audit, identifying quick-win opportunities and deeper challenges. Customer-centric insights emerged:
- Surge in home-based, healthy cooking
- Willingness to invest in higher-quality ingredients with delivery savings
- Openness to explore alternative ordering channels
Observing a preference for low-rental shophouses near private estates, ADA recommended launching a cloud kitchen operation. This liberated the brand from commission levies imposed by retail mall landlords.
The establishment of a "Cloud Kitchen" emphasized zonal targeting and differentiated offers, driving both awareness and cost efficiency. Paid media played a pivotal role in conversion, with RFM analysis optimizing customer lifetime value. The brand’s focus on plant-based protein aligned with health-conscious trends, fortified by collaborations with local chefs.
Results
The impact was transformative:
- A remarkable 388% surge in sales
- A 294% increase in additional sales
- A 21% boost in profitability
- A 76% rise in new customers
- A 67% surge in returning customers
- Tripled ROAS via Paid Media Optimization
- A 40% reduction in manual data work
Awards
- Gold in Best Response to Change category at The Drum Digital Advertising Awards 2021
- Silver in Retail, Ecommerce and Consumer Goods category at The Drum Digital Advertising Awards 2021
- Silver in Food & Beverage category at Mob-Ex 2021
- Bronze in Best Launch / Relaunch at Mob-Ex 2021
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