Red Bull wanted to increase its sales of energy drinks, a category that had undergone tremendous growth and innovation in recent years, but which remained a low-penetration high-margin category. The company wanted to get more households purchasing energy drinks and to reduce out of stocks in the energy drinks category.
Red Bull conducted shopper research that suggested a more shopper-centric way to organize shelf space and facings. The company worked with one of its largest grocery customers to conduct a four-month pilot test using a new shelf layout in 10 test and 10 control stores. The test proved the positive impact of a new on-shelf merchandising plan. Test stores outperformed by all measures.
Next, Red Bull used Market6 data to extrapolate the results of the pilot test to reflect the potential benefit if the new on-shelf merchandising strategy was implemented in all appropriate stores. Red Bull identified $4M in potential additional sales as a result of the new on-shelf merchandising plan. Presented with these findings, Red Bull’s grocery customer quickly moved to implement the new planogram in 1,500 stores.
- National grocer increased sales of energy drinks by $4M in 2014
- All major energy drink brands are experiencing sales growth
- A 30% growth in the number of new households buying energy drinks
- Household spend on energy drinks is 6.5x higher
- Using Market6 data, the energy drink team confirmed that stores with the new planogram have seen a 24% reduction in the frequency of OOS events