Use Cases

Data-Driven Hypothesis Testing: Optimizing Plant-Based Assortments in Retail

September 15, 2023 | By HIVERY
Data-Driven Hypothesis Testing: Optimizing Plant-Based Assortments in Retail

Remaining attuned to customer preferences is paramount. While product trends like plant-based products sweep the market, effectively incorporating them into your assortment strategy requires more than just following the hype. Let's delve into a real-world use case involving HIVERY Curate, shedding light on the power of data-driven decisions to validate strategies and shed new insights that would rarely be considered.

Using HIVERY Curate to Validate Retail Buyer's Quest

Imagine you're a retailer eager to embrace the plant-based trend. You recognize the rising demand for plant-based products and aim to offer a comprehensive selection to cater to diverse customer preferences. But where do you begin, and how do you ensure your strategy aligns with real market dynamics? HIVERY Curate leverages store-level data to discover shopper behavior and optimize assortment strategies.

In this scenario, the retailer's objective was clear: they wanted to feature plant-based offerings heavily. The retail buyer used gut feeling and conventional wisdom, stating, "I would lead into our in-stores located at least within 10 miles of Whole Foods Store." The hypothesis was that customers who shop at Whole Foods are more likely to purchase plant-based offerings if their store offered it. The goal was to tap into the trend and cater to the preferences of customers likely seeking plant-based alternatives.

Recognizing the Power of Hypothesis Testing

While the retailer had hypotheses about the importance of plant-based products near Whole Foods locations—seemingly the logical thing to do—HIVERY Curate brought scientific rigor to the decision-making process, validating if such a strategy would be beneficial. It tested these hypotheses using store-level data and revealed that while there was an appetite for some plant-based products, it wasn't as significant as initially thought. The tool identified only specific stores where the plant-based strategy would be most effective.

Understanding Hidden Markets

Similar to the "Discovering 'Sleeper Stores': How AI is Redefining Retail Insights and Shaping Buying Behaviors", HIVERY Curate discovered other potential distribution opportunities for the plant-based products: their regional stores. Not all of these regional areas have access to Whole Foods stores; HIVERY Curate recognized this disparity and recommended distributing plant-based food more broadly to cater to communities that might not have easy access to Whole Foods.

The Power of Data-Driven Agility

This scenario underscores data-driven decisions' agility and precision in retail assortment planning. It's not about blindly adopting trends but leveraging store-level data to align your strategy with market realities. By doing that, retailers can ensure that unique assortment strategies are well-received and optimized for each store's unique dynamics.

HIVERY Curate exemplifies how data can empower retailers to optimize their assortments successfully. It's not just about following the trend; it's about understanding your customers at a granular level, conducting hypothesis testing, and tailoring your strategy accordingly. As demonstrated in this, this is the key to thriving in today's retail landscape.

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