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EVA, a drogerie retail chain. Boosting category sales in retail

We researched the customer decision journey for feminine hygiene products. It allowed the biggest drogerie retailer to grow same-store category sales by 30% in 3 months.

The Challenge

  • EVA is a drogerie retailer with 1000+ brick-and-mortar stores. To maximize its margin, EVA introduces its private label products (PLs) in most categories.

  • EVA replaces entry-price products of famous brands with the same quality PLs. They did the same for hygiene pads.

  • A few years later, the hygiene pads category was stagnating. We noticed that half of the female customers didn’t buy pads at all, with no solid reason for that.

  • Eva even planned to launch a massive TV campaign to promote the lowest price of its PL hygiene pads to attract more customers to the category.

  • Lanka.CX conducted the design sprint to identify growth opportunities for the category.

One of the EVA stores

Key insights

  • Hygiene pads are a necessity. Everybody prefers to spend less on such products. Yet, the risk of low quality of unfamiliar brands far exceeds the benefit of lower price.

  • Therefore, the majority of women prefer to buy inexpensive yet familiar brand.

  • If the client does not find a familiar brand on the shelf, she would try to find it in another store or buy the smallest pack of the most expensive product. The price signals the quality.

  • It became apparent that by removing the popular brand from the shelves, EVA pushed many customers to buy pads in other stores, e.g., supermarkets.

The team

  • Lanka ran the project as a bootcamp: the EVA team was learning how to apply service design to everyday business challenges.

  • It was essential to have people from all relevant functions in the same team: category manager, sales, marketing, customer experience, and CRM.

  • Lanka’s role was to explain the tools and facilitate the process of research, synthesis, ideation, and prototyping. The whole process took only three working days.

The Outcome

  • The category manager re-introduced a poplar brand of pads to the chain

  • The category of pads grew +30% in three month

  • EVA saved its marketing budget by canceling the TV campaign for PL

  • The category manager decided to re-launch a private label product as a premium-quality product instead of low price alternative

  • EVA stated to practice service design to boost sales of other categories and PL products

Field experiment

  • Lanka introduced a fast-prototyping approach to the team

  • The team experimented at one specific store

  • The team added the popular brand of hygiene pads to the assortment in this particular store.

  • A private label product and a popular brand were put side by side

  • Attractive prices were set for both, the most attractive for private label

  • Teams observed customers’ actions and interviewed those who bought pads from any of two baskets

  • After 3 hours of experiment, popular brand vs. private label sales were 19:2

  • The interviews revealed that the customers who have purchased a popular brand used to buy it in other shops since it was not available at EVA

  • The experiment validated the insights and helped the team reprioritize the category action plan

Contact us if you need to boost your product or category sales in retail!


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