About The Client
The client is a well-known and successful pharmaceutical retail chain in China, with a total of 5,438 stores and over 20,000 employees. The company was founded in 2001 in the Hunan province as a family business and has since expanded to 22 provinces and three direct municipal cities across China.
In addition to offering low prices and in-store consultation services, the client also has membership programs available to customers. The company is also rolling out new store formats with a greater focus on health and beauty products. With annual sales of over $170M, the client is a top player in the pharmaceutical retail industry in China.
Key Challenges:
Lack of store data collection and performance evaluation system, leading to subjective decision-making.
Non-standardized pharmacy management due to the large number of stores
Implemented Solution
As a large retail chain with a significant number of stores, it can be challenging for the client to effectively manage and optimize operations for each location. In the past, the company has relied heavily on subjective experience and gut instincts rather than data-driven decision making due to a lack of a comprehensive store data collection and evaluation system.
In order to address these issues and improve efficiency, the client implemented a traffic digitization system to accurately track customer traffic and customized kanban boards to track various store activities. By collecting and analyzing data on customer traffic patterns, store performance, and other key metrics, LBX Pharmacy is able to make informed decisions and fine-tune their operations to better serve their customers and improve their overall shopping experience.
Key Results
In August, the client launched a late night marketing promotion aimed at promoting health products between the hours of 5:00 PM and 9:00 PM daily. Data from CUE’s RetailX showed that this promotion resulted in a 52.64% increase in sales, but it did not lead to an increase in traffic, meaning that the same group of customers were contributing to the sales.
In addition to the late night promotion, the client also decided to update the brand image in their stores from a marketing perspective. This led to an increase in the entry rate of 13.72% and a conversion rate of 18.14%. These positive results demonstrate the clear impact of the store upgrade initiated by UnderArmour's retail marketing team.
Finally, the company decided to upgrade their internal staff from four to five people. An analysis of this decision showed that it had a positive impact on both sales conversion and customer visit duration.
Increase in store sales.
Increase in the customer entry rate.
Increase in the customer conversion rate.
