Case Study

Rebranding Success: How This Healthy Sustainable Food Chain Pivoted to Suit Changes Amidst the Pandemic

The Scope

This healthy and sustainable food brand was created with the aim of bringing a new dimension to salads and a new approach to fast food. Their core audience are working professionals, and hence they built their stores in all major business districts in Singapore. Over the last 12 years, they have built a following and innovated the F&B scene with self-ordering kiosks and order-and-pickup Mobile App.

COVID-19 was devastating to the food retail industry with the following impact: 

  • – 53% Food & Beverage Sales 
  • – 66.9% Restaurant Sales 
  • + 74.6% Supermarket Sales 
  • – 60% Store Sales

Source: Singstats https://www.singstat.gov.sg/-/media/files/news/mrsapr2020.pdf 

Delivery was eroding the profit margin 

The lockdown emptied the business district, forcing the brand to close 25% of their branches. In response to work from home (WFH) arrangements, they upped their distribution by signing up with all the delivery partners. They also upgraded their existing Pickup App to include delivery as well.

Even with the government subsidies, the ongoing rental and delivery platform commission made it hard for the brand to sustain itself reliably.

From selling salads to selling its ingredients

They set up their own grocer market in July 2020, selling ingredients and meal kits in order to reach out to the WFH crowd. However, this did not help them gain any traction. The website experience was less than ideal and the weekly orders were single digits.

The Objective

  • To investigate and find new sources of growth for the brand
  • Drive more sales to own platform by 15% to attain better profit margin 
  • Grow customer lifetime value by 15% 

The Strategy

Getting the house in order 

ADA delved deep into an audit of their existing digital assets and efforts e.g. sites, app, marketing automation, and data tracking for a full scale gap analysis. We uncovered quick win opportunities and entrenched business issues that required more strategic evolvement. We had to move fast with agility as sales was tanking daily. To build the best response, we started with their customers.  

Finding out what the customer wants 

From our user research and user journey mapping, three key trends emerged: 

  • Healthy home-based cooking with easy-to-cook ingredients is on the rise 
  • Willingness to pay up to 10% – 20% more for better ingredients with savings on transport and other expenses 
  • Open to try out alternate ordering channels beyond the usual delivery aggregators to get what they want

Where are our competitors hanging out?  

We saw the take-up of independent low rental shophouses with easy food delivery rider access near private estates. It was a good base to start a cloud kitchen operation – as it was not at the mercy of retail mall landlords with a commission levy for each retail sale. 

Riding on the consumer and category trends, a strategy was created.  

The brand took a 3-workstream approach to achieve growth:

1. Going into the “Cloud” 

A new concept of “Cloud Kitchen” was set up to target the affluent private estates and as a base for islandwide delivery. The brand rebranded itself and brought the group offering of warm protein bowls, DIY sushi rolls, and açaí bowls under one roof. 

Our media strategy focused on zonal targeting and differentiated ourselves with lower delivery cost and offers. This helped drive high awareness and cost efficiency, while driving traffic to the order website, which allowed the brand to own their own customer data. 

2. Owning the Customer Data for Lifetime Value Growth 

Owning the customer data is key to grow profitability in the long term. With paid media driving the conversion, we needed to drive better ROI in terms of customer lifetime value by leveraging the customer data via Customer Relationship Management (CRM). We crafted the RFM (recency, frequency, monetary) analysis with a welcome programme, and to drive repeat order via personalised email offers. Optimisation was done to drive open rates and purchases.  

3. Focusing on Plant-Based Protein 

While it made sense to sell ALL ingredients we have in the store, it did not differentiate us. With the rise in healthy eating, we saw an opportunity to define the key proposition of what the brand should transform into: a brand focusing on plant-based protein, highly targeted at the growing trend for the health-conscious professionals.  

Partnerships with other plant-based companies, along with local chefs, helped to create favourite local recipes, which improved overall awareness and sales to the new brand. A new beer label was also created by upcycling pumpkin.

The Results

At the end of the campaign, we helped the brand achieve:

3x roas

via Paid Media
Optimisation

58%

increase

in new customer acquisition

67%

increase

in returning customers

21%

increase

in profitability

23%

crm

in customer
lifetime value

76%

increase

in new customers

294%

increase

in additional sales

388%

increase

in sales

40%

reduction

in manual data work

 The success of this campaign demonstrates the value of ADA’s data-first approach to deliver impactful business value for clients.