case study for retail management

The 24 Best eCommerce Retail Case Studies Worth Reading

In the fast-paced world of retail and eCommerce, staying ahead of the game is not just a goal; it’s the lifeline of our industry. For seasoned retail executives, inspiration often comes from the experiences and successes of industry giants who paved the way with their innovative thinking and managed to thrive through thick and thin. That’s why we’re excited to bring you an exclusive collection of the 30 best eCommerce case studies meticulously curated to provide you with a wealth of insights and ideas to fuel your strategies. These case studies are more than just success stories; they are beacons of guidance for retail professionals navigating the ever-changing landscape of our industry.

In this article, we delve deep into the journeys of retail giants who have not only weathered the storms of disruption but have emerged as trailblazers in eCommerce. From adapting to shifting consumer behaviors to mastering the art of online engagement, this compilation offers a treasure trove of wisdom for the modern retail executive. 

Table of Contents

• > Case studies for grocery/wholesale eCommerce retailers
• > Case studies for fashion eCommerce retailers
• > Case Studies for home & furniture eCommerce retailers
• > Case Studies for health & beauty eCommerce retailers
• > Case studies for electronics and tools eCommerce retailers
• > Case Studies for toys and leisure eCommerce retailers

Case studies for grocery/wholesale eCommerce retailers

Retail case study #1: tesco .

Industry : Grocery stores

Why worth reading: 

• Historical evolution: Understanding Tesco’s rise from a group of market stalls to a retail giant provides valuable lessons on growth and adaptation to market changes​.
• Customer service focus: Tesco’s long-term emphasis on customer service, which is consistent across their physical and online platforms, showcases the importance of customer-centric strategies.
• Innovation in eCommerce: The case study covers Tesco’s pioneering of the world’s first virtual grocery store in South Korea, a testament to its innovative approach to digital retailing.
• Crisis management: Insights into how Tesco handled the Horse Meat Scandal, including efforts to tighten its supply chain, contributing to its logistical success​.
• Financial integrity: The study discusses the Accounting Scandal, offering a sobering look at financial transparency and the repercussions of financial misreporting.

Read the full Tesco case study here .

Retail case study #2: Walmart 

Industry : Discount department and grocery stores

• Data-driven success: The case study provides a wealth of data, showcasing Walmart’s remarkable achievements. With an annual revenue of almost $570 billion, a global presence in 24 countries, and a customer base exceeding 230 million weekly, it’s a testament to the effectiveness of their strategies.
• Marketing strategies: The case study delves deep into Walmart’s marketing strategies. It highlights their focus on catering to low to middle-class demographics, the introduction of the Walmart Rewards loyalty program, and their commitment to environmental sustainability, all of which have contributed to their success.
• eCommerce transformation: As eCommerce continues to reshape the retail landscape, this case study details how Walmart shifted significantly towards omnichannel retail. Readers can learn about their innovative technologies and approaches, such as personalized shopping experiences and augmented reality, that have helped them adapt to changing consumer behavior.
• Supply chain innovation: Walmart’s proficiency in supply chain management is a crucial takeaway for retail executives. Their decentralized distribution center model , in-house deliveries, and data-driven optimization exemplify the importance of efficient logistics in maintaining a competitive edge.

Read the full Walmart case study here .

Retail case study #3: Sainsbury’s 

Industry : Grocery stores

• Omnichannel success amidst pandemic challenges: With the fastest growth in online shopping among major retailers, the study illustrates how Sainsbury’s adapted and thrived during unprecedented times.
• Dynamic brand positioning: The analysis delves into Sainsbury’s strategic shift in brand positioning, demonstrating a keen responsiveness to changing consumer preferences. This shift showcases the brand’s agility in aligning with contemporary health-conscious consumer trends, supported by relevant data and market insights.
• Supply chain and quality assurance: The study highlights Sainsbury’s commitment to a stellar supply chain, emphasizing the correlation between high product quality, ethical sourcing, and customer loyalty. With data-backed insights into the extensive distribution network and sourcing standards, retail executives can glean valuable lessons in maintaining a competitive edge through a robust supply chain.
• Innovative technological integration: Sainsbury’s implementation of cutting-edge technologies, such as Amazon’s “Just Walk Out” and Pay@Browse, demonstrates a commitment to providing customers with a seamless and convenient shopping experience. 
• Diversification beyond grocery: The case study unveils Sainsbury’s strategic partnerships with companies like Amazon, Carluccio’s, Itsu, Leon, and Wasabi, showcasing the brand’s versatility beyond traditional grocery retail. 

Read the full Sainsbury’s case study here .

Retail case study #4: Ocado 

• From startup to industry leader: The Ocado case study presents a remarkable journey from a three-employee startup in 2000 to becoming the UK’s largest online grocery platform.  
• Omnichannel excellence: The study emphasizes Ocado’s success in implementing an omnichannel approach, particularly its early adoption of smartphone technology for customer engagement. 
• Operational efficiency: From automated warehouses with machine learning-driven robots to digital twins for simulating order selection and delivery processes, the data-rich content sheds light on how technology can be leveraged for operational efficiency. 
• Navigating challenges through innovation: Ocado’s strategic response to challenges, particularly its shift from primarily a grocery delivery service to a technology-driven company, showcases the power of innovative thinking. The case study details how Ocado tackled complexities associated with grocery deliveries and embraced technology partnerships to stay ahead.  
• Strategic partnerships: The study sheds light on Ocado’s strategic partnerships with grocery chains and companies like CitrusAd for advertising opportunities on its platform. 

Read the full Ocado case study here .

Retail case study #5: Lidl

Industry : Discount supermarkets

• Longevity and evolution: The article provides a detailed overview of Lidl’s origins and evolution, offering insights into how the brand transformed from a local fruit wholesaler to a global retail powerhouse. Understanding this journey can inspire retail executives to explore innovative strategies in their own companies.
• Global success: Retail executives can draw lessons from Lidl’s international expansion strategy, identifying key factors that contributed to its success and applying similar principles to their global ventures.
• Awards and recognitions: The numerous awards and accomplishments earned by Lidl underscore the effectiveness of its marketing strategy. Marketers and eCommerce professionals can learn from Lidl’s approach to quality, innovation, and customer satisfaction. 
• Comprehensive marketing components: The article breaks down Lidl’s marketing strategy into key components, such as pricing strategy, product diversification, and target audience focus. Readers can analyze these components and consider incorporating similar holistic approaches in their businesses to achieve well-rounded success.
• Omnichannel transformation: The discussion on Lidl’s transformation to an omnichannel strategy is particularly relevant in the current digital age. This information can guide executives in adopting and optimizing similar omnichannel strategies to enhance customer experiences and drive sales.

Read the full Lidl case study here .

Retail case study #6: ALDI

Industry : FMCG

• Omnichannel approach: Aldi’s growth is attributed to a robust omnichannel strategy that seamlessly integrates online and offline channels. The case study delves into how Aldi effectively implemented services that can overcome the intricacies of a successful omnichannel approach in today’s dynamic retail landscape.
• Target market positioning: Aldi’s strategic positioning as the most cost-effective retail store for the middle-income group is explored in detail. The case study elucidates how Aldi’s pricing strategy, emphasizing the lowest possible prices and no-frills discounts, resonates with a wide audience. 
• Transparency: Aldi’s commitment to transparency in its supply chain is a distinctive feature discussed in the case study. For retail executives, understanding the importance of transparent supply chain practices and their impact on brand perception is crucial in building consumer trust.
• Differentiation: Aldi’s successful “Good Different” brand positioning, which communicates that low prices result from conscientious business practices, is a key focus of the case study. Effective differentiation through brand messaging contributes to customer trust and loyalty, especially when combined with ethical business practices.
• CSR Initiatives: The case study highlights Aldi’s emphasis on social responsibility to meet the expectations of millennial and Gen-Z shoppers. By consistently communicating its CSR efforts, such as sustainable sourcing of products, Aldi creates a positive brand image that resonates with socially conscious consumers and builds brand reputation.

Read the full Aldi case study here .

Retail case study #7: ASDA

Industry : Supermarket chain

• Omnichannel implementation: The case study details how ASDA seamlessly integrates physical and virtual channels, offering customers a diverse shopping experience through in-store, digital checkouts, Click & Collect services, and a dedicated mobile app. 
• Market segmentation strategies: The incorporation of partnerships with young British designers and influencer collaborations, coupled with socially progressive messaging, reflects a strategic shift that can inspire marketers looking to revitalize product lines.
• Crisis management and ethical branding: The study highlights ASDA’s strong response to the COVID-19 crisis, with ASDA’s actions showcasing a combination of crisis management and ethical business practices. This section provides valuable insights for executives seeking to align their brand with social responsibility during challenging times.
• Product and format diversification: ASDA’s product categories extend beyond groceries, including clothing, home goods, mobile products, and even insurance. The case study explores how ASDA continues to explore opportunities for cross-promotion and integration.
• Website analysis and improvement recommendations: The detailed analysis of ASDA’s eCommerce website provides actionable insights for professionals in the online retail space. This section is particularly beneficial for eCommerce professionals aiming to enhance user experience and design.

Read the full ASDA case study here .

Case studies for fashion eCommerce retailers

Retail case study #8: Farfetch

Industry : Fashion retail

• Effective SEO strategies: The Farfetch case study offers a detailed analysis of the company’s search engine optimization (SEO) strategies, revealing how it attracted over 4 million monthly visitors. The data presented underscores the importance of patient and dedicated SEO efforts, emphasizing the significance of detailed page structuring, optimized content, and strategic backlinking.
• Paid search advertising wisdom and cost considerations: The study delves into Farfetch’s paid search advertising approach, shedding light on its intelligent optimization tools and the nuances of running localized advertisements. Moreover, it discusses the higher cost of visitor acquisition through paid search compared to organic methods, providing valuable insights for marketers navigating the paid advertising landscape.
• Innovative LinkedIn advertising for talent acquisition: Farfetch’s unique use of LinkedIn advertising to attract talent is a standout feature of the case study and highlights the significance of proactive recruitment efforts and employer branding through social media channels. 
• Strategic use of social media platforms: Exploring the brand’s highly consistent organic marketing across various social media channels, with a focus on visual content, highlights Farfetch’s innovative use of Instagram’s IGTV to promote luxury brands. The emphasis on social media engagement numbers serves as a testament to the effectiveness of visual content in the eCommerce and fashion sectors.
• Website design and conversion optimization insights:   A significant portion of the case study is dedicated to analyzing Farfetch’s eCommerce website, providing valuable insights for professionals aiming to enhance their online platforms. By identifying strengths and areas for improvement in the website’s design, marketers, and eCommerce professionals can draw actionable insights for their platforms.

Read the full Farfetch case study here .

Retail case study #9: ASOS

Industry : Fashion eCommerce retail

• Mobile shopping success: eCommerce executives can draw inspiration from ASOS’s commitment to enhancing the mobile shopping experience, including features such as notifications for sale items and easy payment methods using smartphone cameras.
• Customer-centric mentality: ASOS emphasizes the importance of engaging customers on a personal level, gathering feedback through surveys, and using data for continuous improvement. This approach has contributed to the brand’s strong base of loyal customers.
• Inclusive marketing: ASOS’s adoption of an ‘all-inclusive approach’ by embracing genderless fashion and featuring ‘real’ people as models reflects an understanding of evolving consumer preferences. Marketers can learn from ASOS’s bold approach to inclusivity, adapting their strategies to align with the latest trends and values embraced by their target audience.
• Investment in technology and innovation: The case study provides data on ASOS’s substantial investment in technology, including visual search, voice search, and artificial intelligence (AI). eCommerce professionals can gain insights into staying at the forefront of innovation by partnering with technology startups.
• Efficient global presence: ASOS’s success in offering a wide range of brands with same and next-day shipping globally is attributed to its strategic investment in technology for warehouse automation. This highlights the importance of operational efficiency through technology, ensuring a seamless customer experience and reduced warehouse costs.

Read the full ASOS case study here .

Retail case study #10: Tommy Hilfiger 

Industry : High-end fashion retail

• Worldwide brand awareness: The data presented highlights Tommy Hilfiger’s remarkable journey from a men’s clothing line in 1985 to a global lifestyle brand with 2,000 stores in 100 countries, generating $4.7 billion in revenue in 2021. This strategic evolution, exemplified by awards and recognitions, showcases the brand’s adaptability and enduring relevance in the ever-changing fashion landscape.
• Adaptation and flexibility to changing market trends: The discussion on how the brand navigates changing trends and overcame market saturation, particularly in the US, provides practical insights for professionals seeking to navigate the challenges of evolving consumer preferences.
• Successful omnichannel marketing: Tommy Hilfiger’s success is attributed to a brand-focused, digitally-led approach. The analysis of the brand’s omnichannel marketing strategy serves as a map for effective promotion and engagement across various channels. 
• Decision-making and customer engagement: The case study emphasizes the brand’s commitment to data-driven decision-making with insights into customer behavior, leveraging data for effective customer engagement.

Read the full Tommy Hilfiger case study here .

Retail case study #11: Gap

• Overcoming challenges: The case study provides a comprehensive look at Gap Inc.’s financial performance, and growth despite the challenges. These insights can offer valuable takeaways into effective financial management and strategies for sustained success.
• Strong branding: Gap’s journey from a single store to a global fashion retailer reveals the importance of strategic brand positioning. Understanding how Gap targeted different market segments with unique brand identities, can inspire retail executives looking to diversify and expand their brand portfolios.
• Omnichannel adaptation: The case study delves into Gap’s omnichannel strategy, illustrating how the company seamlessly integrates online and offline experiences.
• Unique use of technology: By exploring the technologies Gap employs, such as Optimizely and New Relic, retail executives can learn about cutting-edge tools for A/B testing, personalization, and real-time user experience monitoring. This insight is crucial for staying competitive in the digital retail landscape.
• Inspiring solutions: The case study highlights challenges faced by Gap, including logistical, technological, financial, and human resource challenges. 

Read the full Gap case study here .

Retail case study #12: Superdry

• Success story: The case study emphasizes SUPERDRY’s successful transition to an omnichannel retail strategy, with in-depth insights into their adaptation to online platforms and the integration of technologies like the Fynd app. 
• Mobile-first and social-first strategies: As mobile internet usage continues to rise, understanding how SUPERDRY leverages videos and social media to engage customers can offer valuable takeaways for optimizing digital strategies.
• Sustainable fashion focus: Executives looking to appeal to environmentally conscious consumers can gain insights into how SUPERDRY navigated the shift towards sustainable practices and became a leader in eco-friendly fashion. 
• Data-driven marketing strategies: The case study delves into SUPERDRY’s social media marketing strategies, showcasing how the company uses targeted campaigns, influencers, and seasonal keywords. 
• Global market understanding: By exploring SUPERDRY’s experience in the Chinese market and its decision to exit when faced with challenges, the case study offers valuable insights into global market dynamics. 

Read the full SUPERDRY case study here .

Retail case study #13: New Look 

Industry : Fast-fashion retail

• Strategic pivots for profitability: A decade of revenue contraction led New Look to adopt transformative measures, from restructuring credits to withdrawing from non-profitable markets.
• Omnichannel strategy: Marketers and eCommerce professionals can study New Look’s journey, understanding how the integration of physical stores and online platforms enhances customer experience, reduces costs, and improves profitability.
• Social media mastery: The case study underscores the pivotal role of social media in engaging audiences, showcasing how New Look leverages user-generated content to build brand loyalty and maintain a positive brand perception. 
• Effective partnerships for growth: New Look strategically partners with major eCommerce platforms like eBay & Next to expand its brand presence, and tap into new audiences and markets.

Read the full New Look case study here .

Retail case study #14: Zara

• Rapid international expansion through innovative strategies: Zara’s unique approach to continuous innovation and quick adaptation to fashion trends fueled its global success. Marketers can learn how to build brand narratives that resonate across diverse markets, and eCommerce professionals can glean strategies for seamless international expansion.
• Revolutionary eCommerce tactics: The case study provides a deep dive into Zara’s eCommerce strategy, emphasizing the importance of agility and responsiveness. The brand can be a bright example of implementing supply chain strategies for a swift market adapting to rapid fashion cycles. 
• Visionary leadership: Amancio Ortega’s low-profile persona and visionary leadership style are explored in the case study, aiding retail executives to learn about leadership strategies that prioritize customer-centric business models. 
• Omnichannel marketing and integrated stock management: Zara’s successful integration of automated marketing and stock management systems is a focal point in the case study. With insights into implementing integrated stock management systems to meet the demands of both online and offline channels, Zara can inspire professionals to improve their operations.
• Co-creation with the masses: Zara’s innovative use of customer feedback as a driving force for fashion trends is a key takeaway. Marketers can learn about the power of customer co-creation in shaping brand identity, and eCommerce professionals can implement similar models for product launches and updates.

Read the full Zara case study here .

Case Studies for home & furniture eCommerce retailers

Retail case study #15: john lewis.

Industry : Homeware and clothing retail

• Omnichannel perspective: The data-driven approach, especially in tracking orders and customer behavior, serves as a blueprint for any retail business aiming to enhance its omnichannel experience.
• Strategic growth factors: This case study offers concrete data on the strategies that contributed to the company’s sustained success, inspiring similar endeavors. 
• Innovative customer engagement: John Lewis’s take on customer engagement showcases the brand’s agility and responsiveness to evolving consumer needs, supported by data on the effectiveness of these initiatives.
• eCommerce best practices and pitfalls: The analysis of John Lewis’s eCommerce website provides a data-backed evaluation of what works and what could be improved. The critique is grounded in data, making it a valuable resource for those looking to optimize their online platforms.

Read the full John Lewis case study here .

Retail case study #16: Argos 

Industry : Homeware catalog retail

• Adaptation to the changing retail landscape: Argos’s journey from a catalog retailer to a retail giant demonstrates its ability to successfully adapt to the evolving retail landscape. 
• Omnichannel success story: The case study provides a detailed analysis of Argos’s omnichannel strategy, showcasing how the company effectively integrated online and offline channels to achieve a seamless shopping experience across multiple touchpoints.
• Market share and financial performance: The inclusion of data on Argos’s market share and financial performance offers retail executives concrete metrics to evaluate the success of the marketing strategy. Understanding how Argos maintained a robust market share despite challenges provides actionable insights.
• Technological advancements: The case study delves into the technologies employed by Argos, such as Adobe Marketing Cloud, New Relic, and ForeSee. 
• Overcoming obstacles: By examining the challenges faced by Argos, including logistical, technological, financial, and human resources challenges, retail executives can gain a realistic understanding of potential obstacles in implementing omnichannel strategies. 

Read the full Argos case study here .

Retail case study #17: IKEA

Industry : Home & furniture retail

• Data-driven evolution: This detailed case study offers a data-rich narrative, illuminating the brand’s evolution into a leader in omnichannel retail.
• Pandemic response: This exploration delves into the integration of eCommerce strategies, online expansions, and the balance between physical and digital customer experiences.
• Advanced mobile apps and AR integration: A deep dive into IKEA’s innovative applications, notably the AR app “IKEA Place,” showcases how the brand leverages technology for a seamless customer experience.
• Democratic design approach: The study meticulously breaks down IKEA’s success factors, emphasizing the brand’s holistic approach through the lens of “Democratic Design.” 
• DIY mentality and demographic targeting: A detailed analysis of how IKEA’s affordability is intertwined with a Do-It-Yourself (DIY) mentality. The case study explores how IKEA strategically tapped into a shift in consumer behavior, particularly among younger demographics, influencing not only purchasing patterns but also reshaping industry norms.

Read the full IKEA case study here .

Retail case study #18: Marks & Spencer

Industry : Clothing and home products retail

• Valuable lessons in eCommerce: The Marks & Spencer eCommerce case study offers a profound exploration of the brand’s journey from a latecomer to the online scene to a digital-first retailer.
• Real-world application of effective solutions: By diving into the history of Marks & Spencer, the case study provides tangible examples of how a retail giant faced setbacks and strategically pivoted to revitalize its eCommerce platform. 
• Data-driven analysis of eCommerce failures: The case study meticulously analyzes the pitfalls Marks & Spencer encountered during its eCommerce journey, offering a data-driven examination of the repercussions of a poorly executed website relaunch. 
• Multichannel customer experience: Marks & Spencer’s shift towards a multichannel customer experience is dissected in the case study, emphasizing the significance of a seamless user journey for increased customer satisfaction and loyalty.
• Embracing technology: Exploring Marks & Spencer’s technological innovations, such as the introduction of an intelligent virtual assistant can enhance the customer shopping journey, foster engagement, and contribute to revenue growth.

Read the full Marks & Spencer case study here .

Retail case study #19: Macy’s 

Industry : Clothing and homeware retail

• Resilience and adaptability: The case study showcases Macy’s ability to navigate and triumph over obstacles, especially evident during the COVID-19 pandemic. Despite hardships, Macy’s not only survived but thrived, achieving $24.4 billion in net sales for 2022.
• Omnichannel innovation: Macy’s successful transition to omnichannel retailing is a standout feature. The case study delves into Macy’s implementation of a seamless omnichannel strategy, emphasizing the integration of physical and digital retail channels. 
• Private label strategy: The introduction of new private brands and the emphasis on increasing the contribution of private brands to sales by 2025 provides a strategic lesson. Retailers can learn from Macy’s approach to enhancing control over production and distribution by investing in private brands, ultimately aiming for a more significant share of profits.
• Groundbreaking retail media strategy: Macy’s innovative approach to retail media and digital marketing is another compelling aspect. For marketers, this presents a case study on how to leverage proprietary shopper data for effective advertising, including entry into connected TV (CTV).
• Community engagement and social responsibility: The case study explores Macy’s “Mission Every One” initiative, highlighting its commitment to corporate citizenship and societal impact, integrating values into business strategies.

Read the full Macy’s case study here .

Case Studies for health & beauty eCommerce retailers

Retail case study #20: the body shop .

Industry : Beauty, health, and cosmetics

• Activism and ethical values: The Body Shop has pioneered promoting eco-friendly, sustainable, and cruelty-free products. The brand’s mission is to empower women and girls worldwide to be their best, natural selves. This strong ethical foundation has been integral to its identity.
• Recycling, community fair trade, and sustainability: The Body Shop initiated a recycling program early on, which turned into a pioneering strategy. It collaborates with organizations to create sustainable solutions for recycling, such as the Community Trade recycled plastic initiative in partnership with Plastics for Change.
• Product diversity: The Body Shop’s target demographic primarily focuses on women, but it has expanded some product lines to include men. Its products include skincare, hair and body treatments, makeup, and fragrances for both men and women.
• Omnichannel strategy, technology, and eCommerce best practices: The Body Shop has embraced an omnichannel approach that incorporates personalization, customer data and analytics, and loyalty programs. The Body Shop utilizes technology, including ContactPigeon, for omnichannel customer engagement, personalization, and data-driven decision-making.

Read the full The Body Shop case study here .

Retail case study #21: Boots

Industry : Pharmacy retail

• Long-term success: Boots’ rich history serves as a testament to the effectiveness of the brand’s strategies over time, offering valuable insights into building a brand that withstands the test of time.
• Strategic omnichannel approach: The Boots case study provides a deep dive into the marketing strategy that propelled the brand to success, with valuable insights into crafting effective omnichannel growth. 
• Impactful loyalty program: Marketers can glean insights into designing loyalty programs that resonate with customers, fostering brand allegiance. 
• Corporate Social Responsibility (CSR) as a pillar: The case study sheds light on how Boots addresses critical issues like youth unemployment and climate change, showcasing how a socially responsible approach can positively impact brand perception.
• Adaptive strategies during crises: Boots’ proactive role during the COVID-19 pandemic, offering vaccination services and supporting the National Health Service (NHS), demonstrates the brand’s agility during crises. 

Read the full Boots case study here .

Retail case study #22: Sephora

Industry : Cosmetics

• Authentic customer experience-focused mentality: Backed by an impressive array of data, the case study meticulously outlines how Sephora transforms its in-store spaces into digital playgrounds, leveraging mobile technologies, screens, and augmented reality to enhance the customer shopping experience. 
• Exceptional omnichannel business plan: The early adoption of an omnichannel strategy has been pivotal to Sephora’s ascendancy. The case study delves into the mobile app’s central role, acting as a comprehensive beauty hub with data-driven insights that drive the success of groundbreaking technologies. 
• Omnichannel company culture: The case study illuminates this by detailing how this amalgamation allows a holistic view of the customer journey, blurring the lines between online and in-store interactions. This unique approach positions Sephora as a global leader in turning omnichannel thinking into a robust business strategy.
• Turning data into growth: Sephora’s adept utilization of mobile technologies to harness customer insights is a beacon for retailers in an era where data reigns supreme. The case study dissects how a surge in digital ad-driven sales, showcases the power of data-driven decision-making.

Read the full Sephora case study here .

Case studies for electronics and tools eCommerce retailers

Retail case study #23: screwfix.

Industry : Tools and hardware retail

• Innovative omnichannel approach: The case study highlights how the company strategically implemented online ordering with in-store pickup, creating a seamless shopping experience that contributed to a significant sales growth of 27.9% in just one year.
• Customer-centric strategies: Marketers can gain insights from Screwfix’s emphasis on customer experience. By studying customer feedback and incorporating personalized shopping experiences, Screwfix achieved success in the competitive home improvement sector. 
• Supply chain management for rapid growth: The company strategically opened distribution centers to keep up with demand, ensuring efficient inventory management for both online and in-store orders.
• Mobile-first approach for trade professionals: With a customer base primarily consisting of trade professionals, the company’s mobile app allows for easy inventory search, order placement, and quick pickups, catering to the needs of time-sensitive projects.
• Commitment to employee well-being and community: Retail executives and marketers can draw inspiration from Screwfix’s commitment to building a positive workplace culture.

Read the full Screwfix case study here .

Case Studies for toys and leisure eCommerce retailers

Retail case study #24: lego.

Industry : Toys and leisure retail

• Global reach strategies: LEGO’s case study meticulously outlines LEGO’s focused approach, investing in flagship stores and understanding the local market nuances.
• Diversification and licensing brilliance: LEGO’s commitment to diversification through licensing and merchandising emerges as a beacon for marketers. The collaboration with well-established brands, the creation of movie franchises, and themed playsets not only elevate brand visibility but also contribute significantly to sales. 
• Social media takeover: The case study unveils LEGO’s unparalleled success on social media platforms, boasting over 13 million Facebook followers and 10.04 billion views on YouTube. LEGO’s adept utilization of Facebook, Instagram, and YouTube showcases the power of social media in engaging customers. 
• User-generated content (UGC) as a cornerstone: LEGO’s innovative use of digital platforms to foster a community around user-generated content is a masterclass in customer engagement. This abundance of UGC not only strengthens brand loyalty but also serves as an authentic testament to LEGO’s positive impact on users’ lives.
• Education as a marketing pillar: LEGO’s unwavering commitment to education, exemplified by its partnerships and $24 million commitment to educational aid, positions the brand as more than just a toy. Aligning brand values with social causes and leveraging educational initiatives, builds trust and credibility.
• Cutting-edge mobile strategy: Sephora’s foresight into the mobile revolution is dissected in the case study, presenting a playbook for retailers aiming to capitalize on the mobile landscape.

Read the full LEGO case study here .

Tons of eCommerce retail inspiration, in one place

In the realm of business, success stories are not just tales of triumph but blueprints for aspiring executives to carve their paths to growth. The case studies explored here underscore a common theme: a mindset poised for evolution, a commitment to experimentation, and an embrace of emerging trends and technologies are the catalysts for unparalleled growth.

For any executive eager to script their growth story, these narratives serve as beacons illuminating the way forward. The dynamic world of retail beckons those ready to challenge the status quo, adopting the strategies and technologies that promise scalability. The key lies in constant optimization, mirroring the agility demonstrated by industry leaders.

As you embark on your growth journey, consider the invaluable lessons embedded in these success stories. Now is the time to experiment boldly, adopting new trends and technologies that align with your brand’s ethos. If you seek personalized guidance on navigating the intricate landscape of growth, our omnichannel retail experts at ContactPigeon are here to assist. Book a free consultation call to explore how our customer engagement platform can be the linchpin of your growth strategy. Remember, the path to scaling growth begins with a willingness to innovate, and your unwritten success story awaits its chapter of transformation.

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9 Case Studies That Prove Experiential Retail Is The Future

Table of Contents

What is a pop-up shop? Everything you need to know to try short-term retail  > 23 Smart Pop-Up Shop Ideas to Steal From These Successful Brands > 9 Case Studies That Prove Experiential Retail Is The Future

What is experiential retail, and how can experiential retail benefit your business?

Experiential retail is a term used to define a type of retailing that aims to provide customers with a unique and memorable experience. Experiential retail is typically characterized by one or more of the following features: the use of unique and interesting spaces, objects, or experiences; high levels of customer engagement; and the use of technology to enhance customer interactions.

One key aspect of experiential retail is the ability to create an attractive and welcoming environment for staff and customers alike. This can be achieved through a combination of factors, including good design, cleanliness, and lighting . Another important factor is how well the store reflects its brand identity.

Although there are many different types of experiential retail outlets, they all share certain common elements: they are designed to provide a memorable experience for their customers; they are focused on creating an enjoyable atmosphere for staff members as well as the public; they offer an appealing mix of products and services, and they use technology to enhance customer interactions.

Finally, experiential retail is not just about selling products or services. It is also about building strong relationships with customers that go beyond transactions.

Experiential retail is the future. For years we’ve heard about the decline of physical retail and the rise of the internet. However, the desire for retail experiences is on the rise with 52% millennials saying of their spending goes on experience-related purchases. This introduces the concept of ‘retailtainment’.

Enter: retailtainment

Because of this, retailers have evolved their offerings. By focusing on so-called ‘ retailtainment’ and immersive retail experiences, brands are able to provide customers with fun, unique and in-person experiences that elevate shopping to new heights.

With retailtainment, the retail industry is shifting attention from a features-and-benefits approach to a focus on immersive shopping and customer experience . To be successful, retailers must offer consumers a desirable retail experience that in turn drives sales.

What is meant by Retailtainment?

The term “retailtainment” is used to describe the trend of retailers using entertainment to attract customers and encourage them to spend more time – and money – in their stores. This can take the form of in-store events, interactive displays, and even simply providing a comfortable and enjoyable environment for customers to shop in. The goal of retailtainment is to create a unique and memorable shopping experience that will keep customers coming back.

With the rise of online shopping and brick-and-mortar retailers have to work harder than ever to compete. By offering an enjoyable and entertaining shopping experience, retailers can attract customers who are looking for more than just a transaction. Retailtainment can be a powerful tool to build customer loyalty and drive sales.

How does retailtainment fit in today’s retail experiential strategy?

As shoppers’ expectations become more demanding, retailers are turning to retailtainment to create a more engaging and memorable shopping experience. By incorporating elements of entertainment into the retail environment, retailers can create a unique and differentiated customer experience that will help them stand out from the competition.

There are a number of ways that retailtainment can be used to improve the customer experience. For example, retailers can use interactive technology to create an immersive shopping experience that engages shoppers on a personal level. Additionally, retailers can use entertainment to add excitement and energy to their store environment, making it more inviting and enjoyable for shoppers.

Ultimately, retailtainment can play a key role in helping retailers create a customer experience that is unique, differentiated, and memorable.

What is the difference between retailtainment and experiential retail?

Both retailtainment and experiential retail are designed to make the shopping experience more enjoyable and engaging. However, experiential retail goes a step further by creating an emotional connection with customers. This emotional connection can lead to brand loyalty and repeat business.

Thus, while both retailtainment and experiential retail are important trends in the retail industry, experiential retail is more focused on creating a lasting impression and emotional connection with customers.

Here are our 8 favorite examples of Experiential Retail and retailtainment in action:

Marvel: Avengers S.T.A.T.I.O.N provides fans with interactive brand building experience

The Avengers S.T.A.T.I.O.N. is an immersive exhibit that has toured the world since the first Avengers film. It has appeared in key retail areas such as New York Seoul Paris , Beijing, London and Las Vegas, and always pulls in huge crowds. Based on the global box-office film franchise, Marvel’s The Avengers, the store features real life movie props and interactive displays.

There are Marvel-branded items for sale but the goal of the project is not to shift T-shirts and mugs. It is about delivering an in-person experience to fans and bringing the brand to life.

The Avengers S.T.A.T.I.O.N. is a great example of retailtainment and experiential retail in action. Visitors are fully immersed in the fictional world they adore, further cementing their affiliation and love for the Marvel brand.

For a brand as strong and iconic as Marvel, it would be easy to sit back and take popularity for granted. However, through the use of retailtainment they are continuing to delight their customers beyond the screen.

Farfetch: Creating a retail experience of the future

Image via Bloomberg

Farfetch is as an e-commerce portal for luxury boutiques. It’s successfully positioned itself as a technology provider for brands; combining technology and fashion to provide unique in-store experiences.

José Neves, CEO of Farfetch, has spoken about his concern that physical retail is diminishing; it accounts for 93 per cent of sales today, but by 2025 is predicted to account for just 80 per cent.

Enter: Farfetch’s Augmented Retail Solution

Neves’ vision for retailtainment includes advancements in technology to make the consumer experience more human. He produced Farfetch’s Store of the Future, an augmented retail solution that “links the online and offline worlds, using data to enhance the retail experience.” In its retail store in London, Farfetch provided connected clothing racks, touch-screen-enhanced mirrors and sign-in stations that pulled data collected online to use in-store.

Farfetch provided customers with a sign-in screen to search their purchase history and wish list, which provided valuable customer insight for the sales assistants. There was also a smart mirror to request different sizes, alternative products or pay without leaving the dressing room.

This innovation led them to be labeled as “ The Retailer of the Future ”, allowing customers to enjoy an effortless in-person experience that harmonizes the best parts of boutique shopping with the speed and convenience of online shopping.

Read More: Excess Inventory Post-Holiday? Open a Pop-Up Shop

Huda Beauty: Cosmic experience in Covent Garden

Huda Beauty , one of the world’s fastest-growing beauty brands, ran an immersive retail experience pop-up store right in the centre of Covent Garden, London, to launch a new product range and reach new customers.

Huda used the location ( sourced by Storefront pop up space rental ) to deliver a sci-fi themed experience in support of their new eye-shadow palette Mercury Retrograde.

The entire exterior of the pop-up resembled a multi-faceted, metallic mass of geometrical shapes. This was echoed inside with various ‘galactic’ elements, all manner of mirrored surfaces and shimmering fixtures and elements.

As part of the event, visitors could sit on the throne Huda used in her launch material, all set up to encourage as much social media activity and engagement as possible.

Huda Beauty caught the eye and wowed its visitors. Introducing a whole swathe of new customers to the Huda Beauty brand.

Read More: 4 Beauty Brands Who Successfully Launched A Pop-Up Store

Vans: A shopping experience to remember

Image via Skateparks

The House of Vans in London lives up to the company motto of being “off the wall”. A location where art, music, BMX, street culture and fashion converge, you can find almost everything you can imagine across the 30,000 square feet building. Amongst a cinema, café, live music venue and art gallery, the bottom floor holds the most unique feature of the building: the concrete ramp, mini ramp and street course.

Nothing better epitomizes the Vans brand than a space where young people can not only shop but spontaneously socialize. The House of Vans is the perfect example of how experiential retail can be used to empower a shopping experience.

Read More: How The Music Industry Is Making The Most of Pop-Up Stores

Ikea: Using social media to power a unique retail experience

Ikea brought 100 Facebook competition winners to one of its warehouses and let them stay the night. They were able to select the mattress, sheets and pillows to fully give them a fully tailored experience. A sleep expert was on hand with tips for getting a good night’s rest, including how to find the perfect mattress for any sleeping style.

This was a clever and unique way to obtain visibility and get fans to focus on what Ikea has to offer and try it out for themselves.

This idea came from understanding their consumer insights on social media. Lois Blenkinsop, Ikea’s U.K. PR and internal communications manager, said: “Social media has opened up a unique platform for us to interact directly with our customers. Listening to what they want is what we do best, and the Big Sleepover is just one example of how we’re using such instant and open feedback to better inform our marketing activity.”

From using social media they were able to apply experiential marketing to their retail strategy and provide their customers with a memorable event that brought the brand a ton of visibility and engagement.

Space Ninety 8: showcasing the art of retailtainment

Image via @Space90

As a spin-off from Urban Outfitters, Space Ninety 8 is a shared retail space that spans 5 floors, hosting retailers, galleries and even a rooftop restaurant and bar.

Scanning their Instagram, you can see the variety of what Space Ninety 8 offers beyond solely retail. Advertised next to yoga classes is an album signing by Big Boi, alongside pictures of art classes and Lady GaGa merchandise. By reflecting the flexible nature of modern life, the brand created a versatile store that emphasizes experience, perfecting the art of retailtainment.

TOMS: creating an immersive experience through VR

Experiences don’t have to be a permanent feature of a store in order to make an impact on customers. In 2015 TOMS’ placed VR headsets into 100 stores, enabling them to virtually transport players to Peru to see the impact of their One for One giving campaign on local people.

As you walk through the village stores with locals smiling and waving at you, it is impossible not to feel warmed by the friendly atmosphere. Not only did this retail experience improve awareness of their social corporate responsibility and promote their giving campaign, it also gave customers an unforgettable and immersive experience they were unlikely to forget.

[Check out Toms’ continued focus on immersive retail experiences here]

How to Provide Retailtainment that Drives Traffic and Sales

These case studies all stress the importance of providing an in-store experience. By exceeding expectations you drive emotional reactions. There are five consistent elements each use in their stores to ensure a remarkable customer shopping experience:

• Interactiveness: All of these retailers ensure that the senses are connected – memories of what we feel, hear, see, smell, and touch, may last a lifetime.
• Originality: These ideas were all authentic and natural, making the customer feel as if they entered a different world.
• Connectedness: Customers must feel that the experience has been created for them.
• Unexpectedness: These unique experiences are critical to ensure your brand is remembered.
• Reliability: The experience is executed through tested methods to achieve consistency and excellence.

The future of experiential retail

As the world of retail continues to evolve, so too must the way brands create memorable experiences for their customers. With the rise of digital and mobile technologies, consumers now have more choices than ever before when it comes to how they shop and what they buy. To stay ahead of the curve, brands must find new and innovative ways to engage with their customers and create unforgettable shopping experiences.

One way to do this is through experiential retail – using physical spaces to create immersive, one-of-a-kind experiences that cannot be replicated online. This could involve anything from in-store events and workshops to augmented reality and virtual reality experiences.

Experiential marketing isn’t about spending millions on fancy gadgets for your retail store. Sure it can help, but it’s mostly about a personalized shopping experience and providing an unparalleled retail experience for your guests and customers. The brands that delight their customers are the brands that drive loyalty and advocacy. Couple this with excellent customer service and you’re on to a winner. These case studies all demonstrate how it is possible to follow similar steps to overcome the challenges eCommerce has brought.

The brands that use their physical stores to focus on the customer experience are the brands that will do the best. The dynamic between physical and online retail has shifted and the impact of the Covid 19 pandemic has only accentuated this.

Planning your own experiential retail project and need some help? Drop us a note and we’ll help you out.

For more on launching temporary retail stores and one-off events, download our Ultimate Pop-Up Guide and make your ideas happen.

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Two Global Brand Digital Retail Transformation Case Studies: Lessons & Challenges

Digital retail transformation case studies almost always focus on customer experiences (for example, providing iPads for in-store eCommerce, using augmented reality for product demos, etc.) but in this article we’re going to dive into the other — and equally important — side of digital retail transformation: the employee experience.

In our experience, when employees have access to updated digital tools and training techniques, retail organizations and customers both benefit. Specifically:

• Quicker Onboarding: Employees are onboarded more quickly and retain more information, so training costs decrease.
• Better Training: Employees can look up answers to detailed questions or help customers find products in real time which improves the customer experience.
• Better Customer Experience: Customers are more satisfied and buy more because their questions are answered quickly and accurately. 
• More Insights: Retail leaders get more insight into what training or policies are working the best across an entire organization.

Below, we’ll show you exactly what this transformation was like for two multinational retail brands — each with tens of thousands of store employees.

(Details have been anonymized for confidentiality reasons.)

You’ll learn the real-world details of how we did it and the key insights and lessons that any retail brand should heed:

• The legacy retail training and communication problems these two brands were dealing with (and many others still are).
• A case study of a global sportswear brand’s digital transformation odyssey, including details on why  generic digital solutions simply wouldn’t work for their business model.
• How Bigtincan’s custom-tailored digital training solution helped a multinational beauty retailer overcome a bottleneck for growth and sales productivity.
• The themes that emerge from our experience solving training and communication problems for big players on the retail stage.

First, let’s start with a closer look at the why , by examining some challenges and pain points that have plagued corporate-retail relations for decades.

An Overview of Legacy Retail Training and Communication Problems

Retail employee training procedures and headquarters-to-store communications have always had more than their share of inefficiencies.

Associate training at many retail stores, including (until recently) those of the major brands we cover in this article, commonly involves posting updates on a corkboard at the back of the store and reliance on weekly “team meetings.”

But this standard system doesn’t typically work well.

Just think about it:  how many employees ignore the corkboard, skip the meetings, or just zone out?

Scale those scenarios up to hundreds or thousands of individual retail locations and consider the impact of subpar training methodologies on liability, product messaging, customer experience, and sales productivity, and you have a significant set of inefficiencies that are hurting profitability.

Or, for another example, think about retail training in a store with extremely high employee turnover.

One of the brands we’ll discuss shortly has an average annual attrition or turnover rate around 40% at the store level (largely due to their employee demographics). This is common in the retail industry, and some stores are even higher.

The quality of employee training tends to decrease  in proportion to the number of new employees being onboarded, the other obligations of managers on duty, and during the times of year when customer demand is highest.

In other words, the times when employees should be performing at their peak are when they’re least likely to get the quality training they need to succeed.

Most of these problems with retail communication and training have existed for decades (or longer) because no one knew how to fix them.

Companies may have accepted these inefficiencies as unavoidable for a long time, but that's no longer the case.

However, what’s not necessarily obvious is that basic digital solutions like computer-based training software, cloud-based file-sharing, and email, are inadequate to address these decades-old problems. We’ll explain why that is in a moment, in the first case study.

These case studies are anonymized for nondisclosure reasons, but still contain plenty of details to teach you how we approach and solve training and communication problems at scale.

Case Study #1: Global Sportswear Apparel and Lifestyle Brand

This sportswear apparel company has over a thousand brick and mortar physical stores worldwide and tens of thousands of retail workers.

The vast majority of their store employees are young, high school age to early 20s, which helps account for the average annual employee turnover rate of 40% we alluded to in the previous section.

On the front lines, the customer-facing employees are in what's known as persona-driven positions, which essentially means roles that reflect the "lifestyle brand" nature of the company. As such, the company heavily incentivizes employees to consume and wear the brand — a calculated psychological strategy that fuels brand enthusiasm during associate-customer interactions.

Aside from basic, legally mandated compliance training, most of their retail training relates to running brand campaigns and product launches. They're constantly introducing campaigns or promoting products, typically several at once, and it’s vital for employees to stay current.

The company was facing legacy issues with communication as well as in-store training and they knew it. That’s why Bigtincan eventually won a bid against 50 other service providers. But before we take a look at how we custom-tailored our solution, let’s take a look at the problems.

Global Sportswear Brand Retail Challenges

First off, associates at this company don't have company email addresses.

With the sheer volume of employees and their attrition rate, direct email is unworkable as a mass communication tool. (Side note, cloud-based file sharing platforms like Dropbox, OneDrive, and Google Drive also don’t work at that scale for various reasons, including the fact that young retail employees are unfamiliar with the user interface.)

Instead, communication typically followed a “chain of command” sequence: from corporate HQ to the store manager, then from the store manager to the team leader(s) on duty, and finally from the team leader to the associates.

But since associates didn’t have email addresses, the process entailed printing sheets of paper and tacking them on a back-room corkboard or placing them into a three-ring binder (depending on the store). Team leaders would direct their associates' attention to the communique or training content during morning huddles or “pump up” sessions…at least in theory.

Here are some of the problems that came up in interviews or problems we observed firsthand:

• Communication was slow , especially when it had to travel up and down the chain of command repeatedly.
• No channels existed for any type of feedback, surveys, or polling. No measures of learning success.
• There was zero feedback available on whether training content was interesting or useful.
• No accountability for training: HQ had to take team leaders’ or managers’ word that the training had even been administered.

Memorably, compliance training took place on a lone, aged Windows computer at the back of each store. Stressed store managers and team leaders frequently encouraged new hires to “just click through” mandatory compliance slides as quickly as possible.

There was a lot of friction in the system. It was barely working .

BigTinCan’s Training and Communication Solution

When Bigtincan entered the picture, we offered our easy to custom-tailor app that could run on employees’ personal mobile devices as well as in-store devices. The idea was a one-stop shop for training and communication.

Our app is highly flexible and customizable by default, but we knew this company needed some additional features to address their pain points.

Here’s how Bigtincan solved the problems from the previous section:

• Previously, new product updates or campaign launches were delivered “manually” during morning huddles or weekly team meetings, but our app instead offers frictionless micro-lessons  (based on the concept of microlearning with lessons of 15 minutes or less) so associates can learn at their own pace.
• Instead of bits and pieces of info trickling down slowly, a live feed feature on the training app updates employees in real time to ensure everyone’s on the same page about brand campaigns and product updates.
• Along with receiving constant refreshes and updates in bite-sized chunks, employees can also exceed customer expectations by looking up any answers to their questions instantaneously in the app.
• Managers and corporate have constant access to training stats and follow-through so there’s no more back-and-forth about training participation or accountability.
• The app's communication functionality removed any need for email by offering a direct line between management and employees within the app itself.

Another unique consideration related to the company’s novel approach to fostering brand enthusiasm among associates.

Earlier, we mentioned that the company encourages employees to showcase and enjoy their lifestyle products. We knew that the app had to reflect that rather than feeling “corporate” and boring.

As an executive confided to me, the internal branding is essential because the brand is the equity of the company, period . It’s what makes the difference between a $100 pair of sweatpants versus a $15 pair of sweatpants.

Our solution was to incorporate the type of imagery and style you would normally find in an advertisement directly into the app — virtually the opposite of generic apps, visually speaking. In other words, our app has production value  that helps associates feel excited and proud of their role to represent the brand.

To sum up, we custom-tailored the Bigtincan Learning app to offer a heavily branded experience that focused on daily content updates; frictionless training in chunks of 15 minutes or smaller (even as short as 1 to 2 minutes in some cases), accountability metrics for training participation that are visible to managers as well as corporate headquarters; and company-wide communication optimization.

The end results are a better customer experience, increased sales productivity, and ultimately a huge competitive advantage. Employees can focus on customer engagement and helping customers through their buying journey, while decision-makers at the company receive real-time feedback on what’s working and when to pivot.

Case Study #2: Multinational Personal Care and Beauty Retailer

The company featured in this second case study has over 2,000 retail stores worldwide and tens of thousands of store employees. They carry thousands of personal care and beauty brands along with their own private label.

Aside from cashiers, the company assigns associates dedicated roles as product specialists to work on optimizing the customer experience.

When a customer walks into any section of the store, there’s an associate there who specializes in customer-centric product education and helping the customer find the perfect fit within their niche.

For example, makeup requires employees to understand how to color match (the product to the skin tone of the shopper) and conduct tutorials, while fragrances require a working understanding of hundreds of different products and how to describe their nuances to new customers.

This retail model necessitates extensive training for employees.

Multinational Beauty Retailer Problems

Clearly, this retailer already understood the advantages of placing training first and prioritizing customer experience.

But, by the same token, the legacy approach the company took to training and employee education represented a serious  bottleneck for growth and sales productivity.

Store managers were in a teaching role (in addition to all their other tasks, of course) for employees in all niches. If they had other priorities to keep the store running that day or week, training would take a back seat.

The managers would take regular e-learning courses that consisted of slides and PDFs administered via the store’s lone desktop PC (in, you guessed it, the back room). The quality of these media were severely restricted by poor connectivity, discussed more in-depth below.

Sometimes intensive associate training, such as during onboarding, took place one-on-one. But because the store manager acted as a conduit to all  training, the only way to scale was by doing group sessions.

Role play is an essential part of the learning process for this company, but results were all over the place. Learning outcomes largely depended on the skill and willingness of each manager, and there were no metrics for corporate to understand what was going on at any given store — let alone correlate training with real-world outcomes.

The main reason the company conducted their training that way was because of internet bandwidth issues. Mall stores have limited bandwidth, so streaming 4K, 1080p, or even 720p video was out of the question.

Record-keeping around training was another pain point. Employees were supposed to sign sheets, but sometimes forgot to, or there were suspicions that signatures were collected when training wasn’t completed.

Bigtincan’s Training Solution

Our training solution for this multinational beauty brand was a fully custom-tailored, branded, themed app that worked on employees’ personal devices as well as on in-store devices.

We began by taking into account the chief problems that came up during our audit:

• Managers as sole touchpoints for all training was an inefficiency that often created holdups in other areas of the business.
• The total lack of training accountability bred complacency and indifference, when training should actually be a top priority.
• The inability of training content creators to understand the effectiveness of their training meant that training content couldn’t evolve or improve in meaningful ways.
• Connectivity issues at the store level prevented a modern, high-quality training experience.

The company was receptive to our proposal for a distributed approach to training that would remove the bottleneck effect of relying on overworked managers as exclusive training providers.

With our solution, any  employee can pick up any device at any time, open the training app, enter their ID number, and receive individualized niche training based on microlearning concepts.

We answered training record-keeping problems with a fix that not only provided accountability, but also made associates proud of their training accomplishments. Employees now have training profiles that include certifications and badges for achievements, which are also visible to managers and corporate.

Because there’s still a need for face-to-face roleplay learning (or more often webinar roleplay during the COVID pandemic), we also incorporated instructor-led training (ILT) and events that require attendance to be registered directly into the system and provide employees with badging or certification for attending.

All training analytics were then tracked for instructor-led training and digital learning courses and made readily available in Bigtincan Learning. This was especially helpful for corporate leadership because they were able to track and fully understand how all training was being leveraged and impacting outcomes.

Last but not least, our solution had to address the speed and connectivity issues faced by most mall retail stores.

Fortunately, due to deep experience in retail, we had a solution ready for stores in bandwidth-constrained environments. Instead of constantly downloading new content to the Bigtincan app during the day, we used the back office PCs as media servers or “edge servers” overnight.

In other words, as the mall internet speeds up every night from 12am-4am when stores are offline, our software gets to work downloading new videos, documents, courseware, and other assets to every mobile device.

That training content is available for associate use during the day, without  the terrible user experience due to slow internet buffering, and the system maintains a minimalist daytime connection to the cloud to update employee training actions and completion rates in real-time.

Understanding the Lessons That Emerge

To recap, retail stores have always faced specific challenges around training and communication, which companies muddled through until recently.

Digital transformation in retail offers opportunities to solve these problems, but most providers offer generic solutions that don’t address the companies’ defining needs (such as heavily branded content or personalized experiences during training) or ignore their biggest challenges.

The best way to address retail sector inefficiencies at scale is by using new technologies  to unify communication and training in one-stop mobile apps  for retail associates.

(We also offer options to integrate customer data, pricing, inventory management, e-commerce, and online shopping into apps.)

These retail training and communication apps facilitate never-before-seen approaches to solving decades-old challenges:

• Personalized experiences using microlearning for associate training integrate into their workflow and enhance employee performance rather than serving as a distraction or afterthought.
• Digitalization of daily updates and communication from corporate headquarters to associates overcomes the inadequacies of email and other legacy solutions.
• Tracking and metrics ensure accountability of employees to managers and corporate supervisors for training adherence and meeting performance standards.
• Real-time insights offer feedback on how training affects key outcomes such as customer behavior, customer retention, and operational efficiency.
• Over time, “big data” allows us to leverage machine learning algorithms to automate the pacing and distribution of training and other variables.

And when you address training inefficiencies with digital technologies, customer experience ratings and sales productivity skyrocket.

No one is doing what Bigtincan does, as our track record of working with global brands in areas like sportswear, beauty, yoga, and high-end luxury jewelry shows. Instead of transactional, generic software, we deliver transformative, fully customizable, one-stop solutions.

Book a demo  to learn more and see how Bigtincan could work at your company.

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Please note you do not have access to teaching notes, inventory management practices at a big-box retailer: a case study.

Benchmarking: An International Journal

ISSN : 1463-5771

Article publication date: 14 June 2022

Issue publication date: 24 August 2023

Managing inventory continues to be a growing area of concern for many retailers due to the multitude of issues that arise from either an excess or shortage of inventory. This study aims to understand how a large-scale retail chain can improve its handling of excess seasonal inventory using three common strategies: information sharing, visibility, and collaboration.

Design/methodology/approach

This study has been designed utilizing a case study method focusing on one retail chain at three key levels: strategic (head office), warehouses, and retail stores. The data have been collected by conducting semi-structured interviews with senior-level employees at each of the three levels and employing a thematic analysis to examine the major themes.

The results show how three common strategies are being practiced by this retailer and how utilizing these strategies aids the retailer in improving its performance in regard to seasonal inventory. Among our research findings, some challenges were discovered in implementing the strategies, most notably: human errors, advanced forecasting deficiencies, and the handling of return merchandise authorizations.

Originality/value

This research takes a case study approach and focuses on one big-box retailer. The authors chose to study three levels (head office, warehouses, and retail stores) to gain a deeper understanding of the functions and processes of each level, and to understand the working relationships between them. Through the collection of primary data in a Canadian context, this study contributes to the literature by investigating supply chain strategies for managing inventory. The Canadian context is especially interesting due to the multi-cultural demographics of the country.

• Supply chain
• Information sharing
• Collaboration
• Inventory management
• North America

Esrar, H. , Zolfaghariania, H. and Yu, H. (2023), "Inventory management practices at a big-box retailer: a case study", Benchmarking: An International Journal , Vol. 30 No. 7, pp. 2458-2485. https://doi.org/10.1108/BIJ-11-2021-0716

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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Into the fast lane: How to master the omnichannel supply chain

Omnichannel shopping has become the new normal for almost all consumer products and is likely to remain so for the foreseeable future. Through omnichannel shopping, consumers can shop across multiple sales channels—online using their laptop or phone, in physical brick-and-mortar stores, or at wholesale stores—while benefiting from a seamless, holistic consumer experience. This new normal has important implications for consumer-product companies, including direct-to-consumer businesses such as retail, grocery, and consumer-packaged-goods companies. To survive, these companies must accept the challenge of delivering a great consumer experience across sales channels and shape their supply chains accordingly. Most companies’ supply chains predate omnichannel, however, and layering the newly required capabilities on top of legacy systems can be difficult. Organizations need to undertake broader and deeper transformations to meet rising consumer expectations in consumer experience, individualization, and delivery speed, while keeping delivery costs under control.

Our experience in working with consumer-product and retail companies across categories, including grocery, suggests that organizations looking to master omnichannel supply chain excellence  should focus on seven key building blocks. These building blocks—which cover strategy, information flow, the physical flow of products, process automation, and last-mile delivery—are the principal subject of this article.

The challenge is significant, but consumer-product companies that respond effectively to the changing market environment have an opportunity to gain an advantage over their peers. Players that fail to make this shift will struggle to remain competitive.

The importance of omnichannel: E-commerce is booming, but physical stores remain important

E-commerce was booming even before the pandemic, and the COVID-19 crisis has increased the pace of growth (Exhibit 1). This shift does not necessarily spell the end of brick-and-mortar stores, however. Forward-thinking consumer-product companies have been using their stores to educate consumers on product offerings, reinforce their brands’ positioning, and support e-commerce sales. Despite the pandemic, for example, Nike opened a 26,000-square-foot flagship store in Paris that features a “digitally empowered” end-to-end consumer experience. 1 Sheena Butler-Young, “Why Nike opened a sprawling Paris flagship in the middle of a pandemic,” Footwear News , July 29, 2020, footwearnews.com. Prepandemic research found that opening a new location increases traffic to a retailer’s website by 37 percent in the following quarter. 2 “Physical stores key to retail success, study finds,” International Council of Shopping Centers, October 15, 2018, icsc.com. This complementarity is why it is vital for consumer-product companies to invest in—and master—omnichannel supply chains that can deliver a great consumer experience across multiple channels.

The seven building blocks of omnichannel supply chain excellence

Most companies will need to fundamentally transform their supply chains to deliver omnichannel excellence, but the effort will be worthwhile. The remainder of this article lays out the seven essential building blocks for the omnichannel supply chain of the future (Exhibit 2). 3 While the focus of this article is on supply chains, a complete omnichannel operational overhaul would also include an examination of the upstream value chain (sourcing, product development, and production), particularly if e-commerce is a large share of the business.

Essential questions for each of the building blocks of omnichannel excellence

Consumer-centric supply chain strategy.

• How many supply chain segments are required to deliver the supply chain mission, and what is the objective of each?
• What is the customer offering across different segments, and how can we differentiate ourselves from competitors?
• How can we tailor the assortment to a retailer or to a channel?
• What are the key supply chain risks, and how can we best prepare for disruptions?

Network and supply chain ecosystem of the future

• What is the physical flow of goods through the network? What is the impact of different product–supply speed models?
• How are suppliers managed and integrated to support an agile upstream supply chain that responds quickly to changes?
• Is the distribution network designed for each channel individually, or would an omnichannel network be beneficial? What is the right composition of distribution centers (DCs), new node types, and partner locations?
• How can inventory be shared across channels? Does each channel have its own inventory?
• What are key areas for customer collaboration that could improve information exchange and product flow along the value chain?

End-to-end planning and information flow

• What are the different demand signals in the omnichannel environment, and how can they be captured to predict demand potential through advanced analytics? How can we combine them into an end-to-end (E2E) marketplace perspective?
• What is the optimal inventory level at each stage of the value chain? How can we actively manage inventory to increase availability and keep cash requirements under control?
• How can we best synchronize the product supply with customer demand in stores, in DCs, and with partners?
• How can we align the different organizational entities and plans at key milestones? How can we manage trade-offs and locate and prioritize customers, channels, and orders?
• How can we ensure real-time visibility and accessibility of inventory across all channels and locations?

Omnichannel fulfillment: Node operations

• How can we achieve warehouse excellence in a more complex environment?
• How can we manage returns in an efficient and effective way?
• How can we enable the whole downstream supply chain for omnichannel and optimize in-store layout and processes to enable local fulfillment while providing a great customer experience?

Omnichannel fulfillment: Transportation and logistics-service-providers management

• What do we need to manage transport operations efficiently in an increasingly demanding world? How do we keep transport cost under control and create end-to-end transparency of product flows?
• What are the right logistics partners for the different supply chain segments? How do we get competitive rates and services?

Operating model and change management

• How do we design supply chain processes to support omnichannel optimization? How can digital innovation be integrated in the process design?
• How can we adjust the organizational structure to capture cross-channel benefits and make change happen?
• Which additional skills are needed to enable the future organization? How can we best address the cultural change toward omnichannel behavior?
• How should performance of the E2E supply chain be measured? How can we incorporate the omnichannel dimension, measuring the joint performance rather than individual channels?

Digitization and process automation

• What software and other tools are needed to enable the omnichannel supply chain?
• How can we capture data and use them along the value chain? How are legacy systems integrated? How do we integrate into an ecosystem with our partners?
• How can we contextualize data to conduct relevant analyses? Are operational data consolidated and accessible to the right decision makers?
• How can we employ advanced digital tools such as robotic-process automation, blockchain, and the Internet of Things to enable omnichannel optimization?

The first and most important building block is a customer-centric supply chain strategy. This building block is followed by three strategic supply chain elements—the network and ecosystem of the future, operating model, and digitization and process automation—and also three key supply chain processes—end-to-end planning and information flow, omnichannel fulfillment through node 4 A node is any location that can store and ship products. This could be a shop, a warehouse, or even a pop-up venue. operations, and omnichannel fulfillment through transportation. Consumer-product companies looking to master omnichannel excellence should ask themselves some key questions (see sidebar, “Essential questions for each of the building blocks of omnichannel excellence”).

Being truly consumer centric—meeting customer needs across all channels and grounding all decisions in deep understanding of the consumer—is a widely held objective, but it is difficult to achieve. Common pitfalls include a failure to listen to consumers and a one-size-fits-all supply chain, which leads to a lack of differentiation of services and, consequently, higher costs.

First, companies need to be absolutely clear about which consumer segments they aim to serve. Most companies understandably want to deliver a great service to all potential consumers, but resources are limited; companies need to decide which consumer segments matter most so that they can focus their resources on the most important targets.

After they have identified their target segments (ideally through cross-functional decision making), omnichannel players need to figure out what to deliver to each of these segments. This decision will, in turn, determine how many supply chain segments they need.

For example, a leading global sportswear player has implemented a state-of-the-art supply chain strategy, clearly differentiating among individual segments and defining distinct supply chains for each segment. The company’s most prestigious segment is premium consumers in cities such as London, Berlin, or Paris. These consumers are offered a premium service, which includes a two-hour delivery window on special items, and early access to newly launched products. The supply chain for this segment is therefore focused on fast delivery and reliability. Consumers living in rural areas cannot access the same benefits; the supply chain of this segment has a much stronger focus on efficiency, and standard delivery times are two or three days.

The shift to omnichannel is forcing consumer-product companies to rethink the supply chain ecosystem they are operating in. As described in a previous article , players need to choose the right combination of distribution centers (DCs), new node types, and partners to deliver their consumer-service aspirations within each channel.

The supply chain ecosystem should be an end-to-end collaboration involving all stakeholders, from suppliers to consumers. Companies are only able to deliver on ever-changing consumer requirements if information is shared along the entire value chain, and if all network assets and capabilities are fully leveraged. One example of the importance of collaboration is the growing demand for late customization; 5 Late customization refers to customer requests for customization as part of an online order; for example, by requesting a specific color or inscription. suppliers produce a “blank sample,” which is stored as inventory and customized shortly before delivery.

Collaboration is also a great driver of innovation. For example, consumer expectations have forced consumer-product companies to move from simply shipping products from a warehouse or distribution center to more innovative fulfillment options, such as shipping directly from production facilities or dark stores. 6 Dark stores are large retail facilities that resemble conventional stores but are not open to the public. They are used to hold stock and to fulfill online orders via delivery or click and collect.

Another example of retail partner–driven innovation is “inventory sharing,” as pioneered by Adidas and Zalando, a European e-commerce platform. 7 “Multi-channel pilot in Paris: Zalando delivers same-day for adidas.fr,” Zalando, August 19, 2019, zalando.com. The two companies have adopted a partnership model that involves a shared pool of products; if a specific Adidas product is unavailable at Zalando, the consumer is automatically redirected to the Adidas website. Alternatively, Zalando may deliver products ordered on the Adidas website in order to decrease lead times.

The shift to omnichannel involves an increase in operational complexity; omnichannel operations involve multiple sales channels, multiple network nodes, and a decentralized inventory. Meanwhile, customers expect to be able to access the right products in the right places and in real time. Therefore, omnichannel operations require thoughtful end-to-end planning, which requires significant changes to three key elements:

• Forecasting should be done by market and product group and then disaggregated to channel level. The overall forecast, for example, would predict the total volume of sports shoes to be sold in London. This total number would then be disaggregated into those sports shoes the company expects to sell in stores, through e-commerce, and through other channels. Finally, the forecast needs to take into account omnichannel effects such as cross-channel cannibalization; for example, customers who have a great e-commerce experience may stop purchasing items in stores.
• Inventory should not be dedicated to one channel; companies should have cross-channel inventory pools. Algorithms—which should take into account factors such as forecast demand, the accuracy of past forecasts, lead times, and lead-time reliability—should define optimum inventory levels at each node in the supply chain, including in DCs and stores and with partners. Inventory levels should then be actively managed to maximize cross-channel availability and optimize cash flow. Consumers should have real-time visibility into inventory, and orders should be fulfilled efficiently through continuously reoptimized allocation across all channels and locations.
• Information flow should be seamless among functions, channels, and systems. Players aiming for a truly omnichannel supply chain need to fully digitize cross-channel planning processes and tools, but they can choose whether to start this on one channel or to digitize and move to an omnichannel supply chain simultaneously.

The shift in volume from in-store purchases to e-commerce forces consumer-product companies to reevaluate their fulfillment networks , which are integral to their supply chains. Omnichannel players need to build key capabilities regarding the flow of products to make sure they achieve competitive costs and reliable quality while managing the complexity of omnichannel operations.

Companies looking to add e-commerce offerings to their offline business often add the operations of the new channel to the existing supply chain without sufficient consideration of the new channel’s distinct requirements. The physical flow of e-commerce products, for example, is very different from the flow of products within a distribution center. E-commerce buyers generally expect very short lead times, while cost is more important than speed in the shipping of seasonal stock to the DC of a wholesaler. Stores, DCs, and e-commerce also have different units of measurement; DCs typically think in terms of full truckloads or pallets, while e-commerce is primarily concerned with individual units.

A supply chain that is purpose-built for omnichannel will take into account the varying channel requirements. Warehouse automation  is a good option and can improve speed, quality, and efficiency.

Cross-channel operations should be organized to maximize the value-capturing potential of each channel, including traditional brick-and-mortar stores. In an ideal omnichannel consumer experience, different points of sale are fully connected and integrated. Today’s consumers expect a seamless shopping experience across channels, such as click-and-collect services that allow them to order online and pick up in a store. This expectation means that consumer-product companies also need to reassess in-store processes and layouts to ensure a great consumer experience if both online and offline consumers are served in the same store.

Omnichannel fulfillment: Transportation and LSP management

Transportation and the management of logistics-service providers (LSP) are also significantly more complex for companies with multiple channels to serve, due to the different requirements of each channel. The orders of brick-and-mortar consumer-product companies can generally be booked in advance and delivered by truck. E-commerce services, on the other hand, must process a high number of individual orders at short notice using transportation modes such as couriers or postal services. Omnichannel players need to ensure that they can provide reliable, fast service to all customers while ensuring competitive transport costs.

Success requires organizations to identify the right logistics partners for each segment of the supply chain. Omnichannel players need partners who can deliver small shipments quickly, reliably, and relatively inexpensively, but they likely also need partners that can deliver specialized services, such as “try at home” or electronics installation. Organizations need to carefully source and manage these numerous partners to keep costs down and ensure a consistently high quality of service.

Last mile is generally the most costly transportation segment. Success in this segment requires efficient IT systems, local fulfillment networks, and carefully chosen third-party logistics partnerships. Players need to find solutions that meet consumer expectations on service and lead time, while also offering full transparency about, and control over, costs. These solutions may include leveraging preexisting brick-and-mortar stores or using nontraditional approaches such as bicycle deliveries or local couriers.

To facilitate the supply chain transformation detailed above, and to ensure that each stage runs smoothly, companies also need to invest in two additional supply chain setup elements. These are the focus of the final two sections of this article.

To realize the full benefits of omnichanne l, companies must undertake a full transformation of their operating models, including a redesign of processes, structures, mindsets, capabilities, and performance management. This building block is key to ensuring that the company—and its people—can capture the full potential of the supply chain and deliver exceptional customer value.

As a first step, players need a cross-channel omnichannel team; without such a team, it is very difficult to break down siloed thinking and operations. Consider inventory management when demand exceeds supply or capacity, for example. To ensure good consumer service and enable profit-optimizing inventory allocation, players need one person or team to take ownership of all inventory across channels. The full team also needs to be trained—and given incentives—to optimize for the company as a whole, rather than for any individual channel.

In addition, companies need to be structured in a way that enables intense collaboration with value-chain partners. Assigning clear end-to-end responsibility—from supplier to consumer to the omnichannel team—is an effective way to do this. A leading apparel and footwear player, for example, has set up “city teams” that are responsible for everything from supply management to cross-channel inventory management.

Many companies assume that a full transformation of their operating model will be highly complex, so they tend to apply incremental improvements rather than launching a full overhaul. Ultimately, this approach will not be sufficient to deliver on the opportunity of omnichannel. Instead, companies can simplify their operating-model transformation by taking an agile approach, which breaks the process down into manageable chunks. This process involves built-in test phases and many opportunities to learn and improve.

As this article has demonstrated, technology and effective data-and-analytics strategies that incorporate the right partners are key enablers of an omnichannel supply chain. Players need to ensure that they have the software and tools to capture the requisite data and, crucially, to leverage it.

Rising consumer expectations are pushing consumer-product companies to digitize and automate. The demand for same- or next-day delivery is increasing, for example, at the same time that orders are increasing in both volume and complexity. To meet these expectations, organizations need order-management processes with a high degree of automation and digitization across order capture and sourcing. Digitization and automation are also needed to enable the required instant updates on order status.

Rising consumer expectations are pushing consumer-product companies and retail players to digitize and automate.

Seamless integration of systems and planning tools across channels is also crucial, both to meet consumer expectations and to facilitate management and decision making. For consumers, cross-channel system integration is essential to provide real-time information on product availability and delivery times. For companies, effective cross-channel decision making requires the integration of planning tools with real-time simulation capabilities, especially in situations of scarcity.

The implementation of digitization and automation strategies must be holistic. Separately managed initiatives often add up to less than the sum of their parts and are not sufficient to deliver the required step change in consumer service. But it is equally vital to remember that simply adding smart analytics and automation will not be enough—a fully redesigned operating model is necessary to drive these changes through and deliver omnichannel excellence.

Starting the omnichannel journey

Mastering omnichannel to become a best-in-class player is clearly a significant undertaking, and there is no one-size-fits-all approach to prioritizing. However, a "crawl, walk, run" approach can be an effective way to undertake, and then complete, the omnichannel journey (Exhibit 3).

The aim of aspiring omnichannel players—those at the “crawl” stage of the journey—should be to get the basics right. Above all, it is crucial to define a competitive service proposition regarding the omnichannel journey; companies need to be clear on key issues such as which services to offer and their key differentiating factors. Once players have mastered the basics, they should shift focus to adopting omnichannel best practices and then—finally—to developing distinctive omnichannel offerings. At the end of this process, the operating model will work seamlessly to align incentives and key performance indicators (KPIs) to avoid competition for limited resources. This approach ensures that the various channels are complementary, which is the driving principle of omnichannel.

Consumer-product companies looking to define a starting point for their omnichannel transformation will need a structured maturity assessment on each of the seven building blocks. This assessment will also be instrumental in defining a road map and developing initiatives that address the areas with the potential to add the highest value. The final step before implementing the road map is to develop an effective governance model and powerful change story.

Companies that want to deliver a great consumer experience across multiple sales channels will need to comprehensively rethink many of their traditional supply chain approaches, especially in these times of economic uncertainty. The challenge is considerable, but so is the opportunity—companies that get the seven building blocks of omnichannel right will grow their consumer base and build a compelling, long-term competitive advantage.

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How to Improve Your Brand: Retail Store Case Study

I remember the first time I stepped into a Vans store. I was on vacation with my family in California and we happened to stumble upon one of their stores in San Francisco. I had never seen anything like it before. The store was so cool and hip, and the staff was so friendly and helpful. It felt like a completely different world from the stuffy, boring retail stores back home. Ever since then, I’ve been fascinated by Vans’ unique approach to retailing – which is why I decided to write about retail store case study!

Retail store case study Explained

A retail store case study is a customer research method used to investigate a retail store in order to understand its operation and performance.

A case study of retail outlets can provide insights into the stores’ customer service, product selection, and marketing techniques.

It can also reveal problems and challenges that the store faces, which can be used to improve its operations.

Case Studies Prove Experiential Retail Is The Future

Physical shops are in decline, but experiential retail stores are on the rise.

Millennials are the biggest spenders on experiential shopping, with 52% of their total expenditures going towards these types of products. This has introduced the term ‘Retailtainment’.

Experiential Retail in Action

Brands have to stay creative in order to keep up with their competitors. By providing unique, fun, and immersive experiences, retailers are able to provide their customers with memorable shopping experiences that set them apart from the pack.

Stores are moving away from the features-and-benefits approach to retail sales , and focusing more on creating a memorable customer experience.

To be a successful retailer, you must provide your customers with a pleasant, convenient, and enjoyable experience.

Here are 3 great examples of how experiential retail is being implemented.

Marvel: Avengers STATI-O-N

The Marvel’s Avenger: The Science Behind The Super Heroes is an interactive exhibition that tours around the world.

It’s appeared all over the world, including in New York, Las Vegas, and South Korea.

Based on Disney’s blockbuster Avengers movies, this store has actual costumes and props that were used in the films, as well as interactive exhibits.

The (Marvel): (Avengers) (STATI-O) (project) is not about (selling) (T-shirts) and (mugs). (The goal) of the project is (to deliver) (an in-person) (experience) to fans and (bring) (the brand) (to life).

The Marvel Avengers: S.T. A. T. I. O. N. exhibit at Discovery Times Square is an excellent example of interactive and immersive entertainment.

Fans of the MCU can immerse themselves even further into the fictional world that they enjoy, further cementing their allegiance to the Marvel brand and their love of the franchise.

For a brand as successful as Marvel, it would be easy for them to rest on its laurels. But, they continue to impress fans through creative marketing strategies, such as turning their stores into entertainment centers.

Farfetch: Creating a Retail Experience of the Future

The e-commerce site, farfetch.com, is for high-end boutiques that are looking to create a unique shopping experience for their customers.

The founder of online fashion retailer, FarFetch, believes that the future of shopping lies in using technology to enhance the shopping experience. He predicts that by 2025, 80% of retail sales will still take place in a physical store, but that this percentage will decline as online shopping becomes more popular.

Farfetch’s Store of the Future

The CEO of RetailNext, Robert Neves, envisions a future where consumers can have more human interaction with retailers.

He developed an augmented reality solution called “Store of the Future” that linked offline and online shopping experiences. The “store of the future” featured interactive, touch screen-enhanced mirrors that allow shoppers to virtually try on clothes, as well as digitalized, sensor-enabled, smart-racks that allowed customers to digitally browse items.

The sign-in page at FarFetch gives retail sales reps access to a customer’s order history, wishlist, and profile information.

The mirrors in the changing room allow customers to instantly request different items, sizes or payment methods without having to leave the fitting rooms.

This revolutionary approach to retail allows customers to enjoy the best of both worlds: the personalized experience of shopping in boutiques with the speed and convenience of online shopping.

Huda Beauty: Cosmic Experience in Covent Garden

The luxury cosmetics company, Huda Beauty, created one of a kind immersive shopping experience in London’s Covent Garden. The pop-up gave customers a chance to try on products, learn about the company, and shop the newly launched line.

To launch their new product, the cosmetics company, Huda Beauty, created a futuristic pop-up shop in London. This allowed them to reach a new audience and showcase their products in a unique and memorable way.

The outside of the building featured various geometric and mirror-like shapes and designs. Inside, there were even more reflective surfaces, as well as more ‘spacey’ and ‘cosmic’ features.

At the London launch of her makeup line, the cosmetics queen herself, @hudabeauty, sat on the throne that she used in her marketing materials. This was all part of the effort to get as many likes and shares on social media as she could.

The introduction of the pop-up store was hugely successful. It introduced a whole new set of customers to the brand.

If you’re looking for a retail store case study that will make you think, look no further than Vans. This post dives into the company’s unique shopping experience and how it can be used to improve your own business. From their cool and hip stores to their friendly and helpful staff, there’s a lot we can learn from Vans about creating a great customer experience. So next time you’re thinking about ways to improve your retail business, take some inspiration from this iconic brand!

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Retail Management Case Studies (With Conclusion)

Here is a compilation of retail management case studies along with their conclusions.

1. Case Study on The LOOT:

Apparel and accessories retailing is the largest segment of organised retailing in India, constituting 38.9% of the total organised retailing business, which currently stands at about Rs. 55,000 crore (USs 12.4 billion) at current price. Some prominent brands like Lacoste and Benetton had also preferred this when they entered the market.

In fact, a large number of Indian brands have also adopted the franchisee route for expansion due to the relatively lower level of investment involved. Despite the relaxation in FDI norms in case of single brand stores, a large number of foreign brands have opted to enter the Indian market through shop-in-shop arrangements with leading department store chains, like Shoppers Stop, Lifestyle and Westside.

Middle-class buyers have traditionally depended on end- of-season sales to buy their annual quota of clothes, which lasts enough till the next sale. Now, they need not wait for a whole year to replenish their wardrobes as retailer, by the name of the Loot is leveraging the demand for branded clothing and accessories and is offering these products at discounted rates throughout the year.

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Based on the success stories of discount stores such as Ross and TJMaxx abroad, the Loot is offering Spykar, Levis, Reebok and many more brands at throw away prices round the year. The discount stores are targeting the youth and families currently shopping at the malls. “Our competitors are the likes of Shoppers Stop, Globus, and Pantaloons etc.” says Jay Gupta, Managing Director, The Loot, the Mumbai based Rs.75-crore discount store chain.

Product Mix Strategies Adopted by The LOOT:

The chain of stores is able to buy cheap since they purchase in cash, in odd sizes, end-of-season and surplus products.

The store retails brands like Adidas, Nike, Puma, Reebok, Fila, CAT, ID, Skechers, Red Tape, Marco Ricci, Nautica, Umbro, New Balance, Spykar, Kappa, Bossini, Wrangler, Lee, Lee Cooper, Pepe Jeans, Rifle, Ragz jeans, Recap, SF jeans, Parx, Park Avenue, Van Huesen, Allen Solley, Arrow, Thomas Scott, Colours, Tuscan Verve, W, Welspun, Lilliput, Giny and Jony, Disney, Ruff Kids, Lee Youth, and international brands like Mercedes.

The company stocks 140 brands across categories of apparel, footwear, home decor, jewelry and accessories. The apparel manufacturer offers end-to-end apparel specialization — from fashion forecasting to design to sourcing and finally manufacturing.

Eccentrics and Bus-stop are the company’s private labels accounting for a quarter of sales. The company is soon planning to spin off these labels as EBO’s. Originally, the Loot was essentially a youth-centric store and the products ranged from apparels to shoes and accessories. However, now the company has added a number of other products including home linen etc.

Mr. Gupta started off as a franchisee of various brands and later moved into the current format of ‘Value Retailing’ in mid-2004. The store retails brands and sells them at discounted rates of up to 60%. The price range for apparels is between Rs. 99 and Rs. 995. A typical branded jean would cost about Rs. 495. Prices of many of the products after discount are all under Rs. 1,000.

Reasons for Success of The LOOT:

According to India Retail Report 2007, just three segments, footwear, clothing and accessories account for close to half the Rs. 55,000 crore of organized retail market. Gupta says his research show 45% of the branded goods are sold in discounts, which translate to a Rs. 12,000 crore opportunity. There are not many organized retailers in the discount format. A discount store offers a wide range of options in brands and it works because of low brand loyalty.

In the year 2005, the store was nominated in “India Fashion Forum” for the best value store in India and again in 2006, it was nominated in “India Retail Forum” for the best value store in India.

In the “India Retail Forum” 2007, it was nominated in the below mentioned categories:

1. Most Admired Retailer of the Year:

Retail Marketing Campaign.

2. Most Admired Retailer of the Year:

Retail design and visual merchandising.

3. Most Admired Retailer of the Year:

Innovative concept.

As per The Franchising World (2008), it is amongst the top 50 business opportunities in India. The Loot was selected one amongst the 12 ‘Small ideas big changes’ series in The Hindustan Times in Mumbai in 2008.The Loot has been confirmed amongst the top 30 start-ups from 600 entries in the TATA NEN hottest start-up awards.

Recently, the Loot has been awarded with:

1. “Star Entrepreneur Award” at the International India Innovation Summit held on 23rd & 24th January, 2009.

2. “Critics’ choice for Pioneering Effort in Retail Concept Creation” award at the Images Fashion Awards 2009.

3. “Young Retail Achiever of the Year Award” at the Reid and Taylor Awards for Retail Excellence on 3 rd February, 2009.

4. “Star Youth Achiever Award” on 4 th February 2009 at the Global Youth Marketing Forum.

The company differentiates itself on the basis of 25-60% discount it offers on aspiration brands on merchandises that are not defects of seconds. “Last year, our turnover was Rs. 52 crore. This year, with the new stores coming up we are looking at a turnover of at least Rs. 80 crore. Gupta adds that they spend about 3-5% of their total sales on marketing depending on the season and till date the only media vehicle they had explored are print and outdoors. Now they plan to include radio as well”.

Gupta said the company had created a niche for itself by offering a minimum of 25% and going up to 60% reduction in the maximum retail price of branded apparels and footwear. The company buys apparels or footwear in large quantities from brand owners and offers the goods to customers at discounted prices.

The company competes with the discount sale offers by the brand owners themselves or with the ‘owned outlets’ where the merchandise is offered at reduced prices. He added that the Loot will score over these options on the strength of its ability to offer a greater variety of products and more attractive prices. “We will stock the entire range of fresh merchandise, albeit after a time lag of three to six months.”

He said the present pattern of introducing new designs every season has created a huge opportunity for the company as newer stocks can be picked up every three to four months. “There is a very small section of consumers who buy and wear designs only when it is in season; the rest look for well-known brands with a lowered price tag,” Gupta said.

Promotion Strategies Adopted by The LOOT :

The Loot has roped in actor Gulshan Grover as its new brand ambassador. It is a chance to encase on the ‘Bad Man’ image of Grover, sharing tricks of the trade for the benefit of the consumer. The creative concept revolves around the villainous character which has a knack to loot and who makes leading international and domestic brands available at discounted rates.

Bollywood’s original bad guy created history in cities like Pune, Surat, Ahmedabad, Jabalpur, Raipur, Amritsar, Jalandhar, Bangalore, Mysore etc. As he and his entourage of bikers crashed the carton wall barricade of the Loot and proceeded to fill his gunny bag with goodies offered at unbelievable prices.

Surprisingly no one seemed to mind as this was part of the dramatic and unique launch of India’s first multi-branded discount store in these respective cities. The distinctive inauguration act was unlike what any one and seen before, with the loot sequence based on the store’s integral message — Great Steals on Big Brands.

The store aims to leverage the negative shades of Gulshan to influence the customer’s desire for great steals on big domestic and international brands. Gulshan says, “I think it’s very gutsy of the company to forego a conventional hero and to have someone like me who is known for his villainous roles.”

Bollywood star Irfan Khan and top model Anchal Kumar shocked the guests present at the Loot store as they crashed in the store glass driving in the jeep. It was a promotional gimmick by the store to announce their new initiatives and a big sale at the store.

The multi-brand retail chain, while celebrating its third anniversary launched its Loot Ko Loot Lo scheme, which officially gave everyone the license to Loot. To avail this scheme one had to fill the registration form available at the loot stores in order to get a license to loot as much as one could in a minute.

Fifty selected people from each location participated in the lucky draw that gave them the freedom to loot in one minute and get numerous things. The lucky draw was held at the Marine Lines store.

Besides this scheme, Loot is also giving promotional offers like:

1. Buy 1 Get 1 free, Buy 2 Get 3 free etc.

2. Get denims for Rs. 499 to Rs. 599 each on purchase of two denims from brands like Spykar, Lee Cooper, Eccentrics and SF.

3. Buy merchandise worth Rs. 1,500 and above and get a cap Free worth Rs. 199.

4. Buy merchandise worth Rs. 2,500 and above and get a T-shirt Free worth Rs. 295.

5. Buy merchandise worth Rs. 3,500 and above and get a watch/bag Free worth Rs. 695.

Post the success of these promotions,

6. The Loot has done many tie-ups with companies like Cafe Coffee Day, Club Mahindra, SBI bank, and Barclays Bank giving additional five per cent discount.

7. With MTV on contests like Loot Woot contest and Gangster of the Year.

8. Yoko’s and Kobe’s – printed table mats.

9. Time Out- Gift vouchers for the readers.

10. College events and other sponsorships.

11. Tie-up with Barista.

Future Prospects of The LOOT :

The company, closed last fiscal with Rs. 52 crore and hopes to close this fiscal with a top line of Rs. 80 crore an is now ready with big roll out plans. Their target is to have 200 stores by 2010, covering almost a million sq. of retail space. Half the stores would be company owned, with the other half operated by franchisees.

To fund the roll outs, Gupta, in the near future is looking at raising about Rs.100 crore through private equity by offloading about 25% equity. They plan to go public with an IPO in 2011 and would raise a similar amount.

On the company’s expansion plans, Gupta said they would follow a strategy to ensure its presence in state capitals, places near airports and at places where the population is above five lakhs. “These are the places where we have customers who understand our value proposition,” he said.

Of the three formats the Loot has, by 2010, extra-large (8,000 sq.ft. plus) ones would number 20, large (4,000-8,000 sq.ft.) would be 70, and medium (2,500-4,000 sq.ft.) would be about 130. The extra large format soak up investments worth Rs. 3-5 crore and large and medium ones from Rs. 1.5 crore to Rs. 75 lakh each.

In order to push up its average bill ticket size of Rs. 1300, Gupta is toying with the idea of introducing designer labels in his store, which, like other products in the store, would be available at a 25-60% discount to the sticker price. The Loot has tied up with over 100 brands and in a first of sorts, Eccentric & Busstop are its private labels that account for a quarter of overall sales and the same would soon be spun off into national brands.

Apart from the metros, Loots are planning to open outlets in mid-sized cities including Surat, Baroda, Jamnagar, Ludhiana, Pune, Hubli, Gangtok etc. While some would be company owned, others would follow the franchisee model.

Explaining the Loot’s ability to offer substantial discounts, Gupta said, “We do a lot of opportunity buying, that is purchasing excess production of companies. Besides, our supply chain management is such that it results in cost savings.” Advertising, which accounts for 7-8% of the budget of garment companies, is another area where we save.

Conclusion:

All in all, Mumbai-based the Loot (India) Pvt. Ltd aimed expand its retail chain to 100 from the present 92 by March 09, an investment of Rs.150 crore. The expansion will be partly funded by debt, and the rest would be through Gupta’s personal contribution.

2. Case Study on DLF Emporio:

DLF Emporio, the country’s first luxury mall in Delhi, will house 130 brands, including 70 international brands. Many of these brands would make a debut in India with their stores in this mall. DLF is in the final stages of talks with some of them, including Armani and Dolce & Gabbana, for an equity joint venture.

Armani, Versace, Hugo Boss, Louis Vuitton, Christian Dior, Dolce & Gabbana, Escada, Cartier and several other tony brands would be available under one roof at this mall.

Emporio would house brands across several product categories- apparel and fashion, (Tods, Dolce & Gabbana, Canali, Louis Vuitton, Christian Dior, Fendi), accessories, watches, perfume and jewelry (Cartier, Harry Winston, de Grisogono, Gem Palace, Ganjam). Almost 30% of Emporio’s selling space would be occupied by men’s exclusive brands such as Paul Smith, Hugo Boss, Armani, Corneliani and Versace.

Another striking feature would be a watch zone, the first of its kind in India. At least 12 international watch brands would occupy 15,000 sq.ft. space. Piaget, Chopard, Vacheron, IWC, Harry Winston, Vertu, Jaeger, Breguet, AP and Rolex are some of the big names to come up in the mall. The mall measures 3.5 lakh sq.ft.

Opportunities Offered by DLF Emporio:

The mantra is that if you have it, flaunt it. Aspirational shoppers are giving a fillip to luxury retailing in India. And if statistics are anything to go by, India will soon emerge as the biggest consumer market for luxury goods globally. Not surprising that over 200 international luxury brands are making a beeline for the sub-continent.

The 2007 Asia Pacific Wealth Report, released by Merrill Lynch and Cap Gemini, says India has recorded the world’s second fastest growth in the number of high net-worth individuals (HNIs) at 20.5%, making it a lucrative luxury market.

Luxury seems to be the buzzword today. According to an estimate, 200-300 international luxury brands are trying to make an entry into India. As of now, the luxury market is worth Rs.2,400 crore (Rs.24 billion) and continues to grow at 30-32%. It is expected to climb up to Rs.5,000 crore (Rs.50 billion) by 2010.

India’s tryst with luxury brands changed gears. With high disposable incomes and a penchant for all things luxury amongst affluent Indians on the rise, the country is emerging as the next stopover for global luxury brands. Indian consumers are well travelled.

They have access to international brands. According to consulting firm AT Kearney’s estimate, the luxury product market in India is worth $377 million at present and likely to grow at a CAGR of 28% for the next three years. Mumbai, Delhi and Bangalore are said to be the top three markets for luxury products in India.

Merrill Lynch and Cap Gemini’s World Wealth Report 2008 says India, China and Brazil had the highest high net-worth individual (HNI) growth at the country level. Not just that, in 2007, India actually led the world in HNI population growth at 22.7%, exceeding gains of 20.5% in 2006.

Mall Promotions of DLF Emporio:

DLF India’s biggest real estate developer, which is preparing a wide promotional campaign for the mall, plans to rope in Hollywood and Bollywood stars for this mega initiative. DLF mall would reflect retro Indian opulence. From architecture and interior to ambience and tenant mix, the mall has tried to retain the stamp of Indian luxury. DLF also has 34 Indian designers for the first time under one roof.

Future Plans of DLF Emporio:

DLF Ltd., which is building a mall for foreign and local luxury brands in New Delhi, plans to come up with five more such malls to cash in on a burgeoning market for high-end goods currently stymied due to a lack of space. DLF opened its first luxury mall, Emporio, in the Vasant Kunj area of New Delhi. DLF has already acquired land in Mumbai, Kolkata, Bangalore, Chennai and Hyderabad and the projects are in the planning stage.

DLF plans to focus on opening such malls in second-rung Indian cities such as Pune and Ludhiana. “In a 10-year time line, we see the luxury sector penetrating into smaller cities,” Singh says. But getting the much-needed space is just one part of the problem.

The number of rich Indian millionaires is increasing by the day and thus, it is evident that the luxury market in India is soaring. More and more luxury brands are now heading to India either to expand their existing outlets or to setup shops. With the opening of Emporio and UB city prestige malls, luxury brands have even more reasons to rejoice.

However, Indians are still not well aware of the difference between luxury and premium brands as most of them perceive them to be the same. Also, luxury brands will have to equate their prices here with the ones abroad as the new age Indian is well travelled and a little price conscious. As the prices here are higher than the ones abroad, Indians prefer picking up their luxury products while travelling or holidaying abroad.

3. Case Study on Akbarallys:

Journey of Akbarallys:

A century of trust with loads of innovation added early on when the market for organized retail was not even conceived, the legacy of India’s oldest department store that brought with it the idea of convenient shopping under one roof — Akbarallys is a name that begs no introduction in Mumbai.

Akbarallys was established 112 years back in 1897. Now it has two full line department stores in Mumbai having pioneered the department store concept of convenient shopping under one roof in India after the British owned department stores like White way Laid-low, Evan Fraser, Hall & Anderson, Army Navy Stores closed down.

It was in early 1897 that a young man by the name of Akbarally Ebrahimji bought a 30 sq. ft. space near Gunbow Street in Mumbai and started a department store. The difference that he brought in the store was fixed pricing concept, there was nothing that could be bargained.

Then, the store was called Akbarally Ebrahimji and it dealt primarily with toiletries and a few food items. The initial journey was started by the current chairman Fakruddin T. Khorakiwala’s uncle. Khorakiwala’s father, Taherbhai Ebrahimji, became a part of the business a couple of years later when Ebrahimji expired. The junior Ebrahimji spread the store to three more locations in South Mumbai.

Apart from looking after the three stores, Ebrahimji was involved in importing tea from Darjeeling. He later went on to bring out a pesticide called Akshir and a balm called Akbar Balm.

The father and son duo (Taherbhai Ebrahimji and Fakruddin Khorakiwala) went ahead with expanding their business, which led to Khorakiwala giving up his ambition of pursuing the field of law. In between, along with two of his colleagues, Khorakiwala got also involved in marketing of the brand Amul and establishing it across the country.

Private Label of Akbarallys:

Private label now play an integral role in the strategy to entice customers and the company has launched the Allys range of shirts targeted at the upper bracket. The launch of Allys followed the existing Troika range of shirts and trousers. With a range of offering for men’s apparel, the brand earlier did face some hurdles to gain acceptance.

Troika was generating just two per cent from the total sale of men’s apparel. Today, the brand has grown by 50 per cent. The Troika brand includes shirts, belts, handkerchiefs, underwear and ties for men. Everything under Troika is outsourced.

The quality of Troika is at par with any of the international brands available. Akbarallys do not spend on advertising on the brand; the benefit is passed to customers whereby the brand is available at half the price as against any other brands. The company is also in talks with that manufacturer of home appliances to launch toasters, fans and pressure cookers under its brand name. Offering discounts has never been a practice at Akbarallys but the retail chain is looking to give freebies on purchases made by the customers.

Competition Faced by Akbarallys:

Competition in the form of large format stores has popped up in Mumbai. Akbarallys is a general merchandise shop stocking everything from apparel and accessories to non-apparel items like home furnishings and accessories, consumer durables, etc. Organised retail in Mumbai has seen players like Shoppers Stop, Pantaloon, Westside, Globus, the Loot, Levis, etc.

Till 1992, Akbarallys had absolutely no competition. It was considered to be a status symbol to shop at Akbarallys. With the mall culture setting in, this store slowly lost popularity. The younger population today does not remember Akbarallys; they are more inclined towards shopping at malls because of the ambience and also the variety offered.

Every day the Fort store attracts around 500-600 customers and their conversion rate is about 42%. The average billing is around 650. The shops are kept open between 9 am to 11 pm except on Sundays. The store is closed on Sundays. The turnover of Akbarallys last year was approximately Rs.25 crore. Currently, the advertising budget averages around two per cent of the annual turnover. Although Akbarallys has been a pioneer, today it is screaming for attention to regain its popularity.

Expansion Plan of Akbarallys:

Despite being the first mover in the department store business, Akbarallys today finds itself open to the market forces of competition. With new players in the fray, Akbarallys realised that the initiatives are imperative to ensure that the century-old legacy is not forgotten in the labyrinth of the retail market playground.

Therefore, it has adopted a quiet gameplan to further its reach. The century-old brand has set up small super markets in the city and is planning to take this initiative across Maharashtra. It has outlined an investment of over Rs.20 crore for its expansion plans, which will be implemented in the next two years. Realising that it needs to refurbish the look and feel of the department store, Akbarallys is looking at people, product-mix and ambience as three important parameters to acquire a new look.

Under its expansion plans, Akbarallys has set up supermarkets of 1,000-2,000 sq. ft. in various part of Mumbai suburbs. The supermarkets are aimed at catering to the daily provision needs of consumers. An interesting concept introduced is that of setting up convenient stores at petrol pumps — these are like mini-supermarkets. Branded as ‘Convenio’, these stores are doing very well. In the coming years, Akbarallys plans to set up more such outlets in Mumbai.

For the supermarket initiative, the company is not making any investment in properties, but has entered into agreements with owners of properties in various suburbs of Mumbai. The agreement is based on a percentage sales basis with the land owners.

Mr. Salim Dalal says “We are purely a retailer and, therefore, operate on very low margins. Entering into percentage of sale agreement remuneration with the land owners enables us to control our fixed costs. Expansion did not happen as expected simply because of various reasons especially lack of human resources.”

Akbarallys customer loyalty program is called “VALYOU” card. This program offers members an opportunity to avail a variety of special benefits by amassing points on their purchases, and it also offers them privileged shopping experiences. Akbarallys at present has a data base of more than 9,000 loyal members.

Offering freebies, is viewed as ensuring client loyalty and giving consumers value for the money spent on purchases. As part of loyalty program, Akbarallys has tied up with various banks under the ‘buy now pay later’ scheme. The scheme enables consumers to make purchases without paying on the spot. Payment can be done through installments without paying any interest.

What can department stores do to stay relevant and survive? They will either have to offer distinctive products, provide exceptional service, or compel the loyalty of high-purchase, multi-trip shoppers with customized programs and rewards. Without these types of improvements, department stores face either expansion, consolidation or acquisition. Thus, the winds of change are slowly sweeping across Akbarallys and one hopes the changes will enable it to hold its ground in times to come.

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Retail Management

I think that Nordstrom new program Is slightly more productive than the old program. They have made It more Important that the customer shop at Nordstrom with their loyalty card rather than lust shopping anaphora. This will boost Nordstrom share of wallet. Also they have added an effective tier system that may push customers to buy more than they would have originally. 3.

Nordstrom will have Its most success If they target the upper class for their loyalty program.

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In order to really benefit from the program, the customer needs to be able to have a lot of disposable income. They should also target their regular customers. 4. I believe it is worth it.

Obviously Nordstrom is having tremendous success, and a lot of it is due to the loyalty program. There are people that enjoy spending ridiculous amounts of money on overpriced clothing with no benefit to them at all, so a program that gives them back a little will only entice them to spend more. 5. I think that the wealthy are less drawn to a loyalty program normally.

Those that are middle class and are frugal (the couplers) would be more drawn to a loyalty program that gives them rewards back on things they already plan to purchase.

I think the only time that the wealthy class would be drawn to the loyalty program is for a status issue. Some may find it important to them to belong to a high class business loyalty program. 6. A strength of these programs is that it draws customers in and entices them to spend more money with the store. This will ultimately increase the company’s share of wallet.

A weakness of the loyalty programs s that it isn’t really a great value for the customer.

Some may perceive it as a value, but in reality they are spending exorbitant amounts of money to receive very little back in the long run. For instance, receiving $25 back after spending $1000 is not much of a bonus. Many of the rewards these programs provide are simply not worth spending the money. Work cited: retallcustomerexperience. Com Retail Management Chi. 18 Case Study By insistence’s Case Study 18: Nordstrom much bigger than points, thresholds or incentives.

It is about changing and influencing behavior in a proactive manner that creates long-term brand advocates who, in turn, enter into a dialogue with the brand. ” 2. I think that Nordstrom new program is slightly more productive than the old program. They have made it more important that the customer shop at Nordstrom with their loyalty card rather than just shopping anywhere. This will boost Nordstrom share of wallet. Also they have have originally.

3. Nordstrom will have its most success if they target the upper class spending the money. Work cited: retailcustomerexperience. Com

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How Canadian Tire leveraged the potential of customer data with AI

Decentralized data re-centers focus on customers for one of Canada’s most iconic and trusted retailers.

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How fast could you drive business without a data roadblock?

Advanced analytics and artificial intelligence changed a two-lane road into an information superhighway.

I n 1937, Toronto-based Canadian Tire Corporation (Canadian Tire) surprised and delighted its customers with a novelty: clerks on roller skates. These “fillers,” as they were called, were able to fulfil customers’ catalog orders just a little faster on wheels.

Innovative customer service has been the primary driver of Canadian Tire’s business model for more than a century, as the company has grown from a single tire shop to Canada’s leading all-purpose retailer. With more than 1,700 locations across three industries, 13 recognizable brand banners, and 34,000 employees, Canadian Tire has expanded to provide general merchandise, sports apparel and gear, automotive products, real estate, and credit card offerings.

In 2021, Canadian Tire developed a strategic plan to elevate its customer-centric culture through a business transformation powered by data insights. The iconic Canadian company recognized an opportunity to bolster its brand position by sharpening its focus on the customer through data quality, accessibility, analytic capabilities and, ultimately, effective business application.

“We knew we had the customer data available to drive our entire business farther and faster,” says Jane Nakamachi, SVP, Business Architecture at Canadian Tire Corporation. “What we wanted were more sophisticated capabilities to sort, request and grant access to our business leaders who need specific data sets to grow their areas of the enterprise.”

Priority target areas included clearer data sourcing and ownership, advanced analytics and artificial intelligence (AAAI) capabilities, and an optimized technology infrastructure.

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Previously, only a limited number of people were able to generate and provide the various reports needed for analysis, planning and decision-making. Leaders saw a chance to open the information pipeline to accelerate queries and increase data accessibility for Canadian Tire’s wide range of business units and stakeholders.

Canadian Tire asked Ernst & Young LLP (EY) teams to create a plan to help modernize all of its customer data environments — in a deliberate shift from over-centralization to a more decentralized, business-embedded data model. In addition to improving visibility and operational efficiencies, the core objective was to drive growth and facilitate customer personalization across its 13 banners.

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To help Canadian Tire improve its customer data management, EY teams launched a thorough data maturity assessment. Focus areas were data management processes, data accessibility and governance practices, business intelligence or Microsoft Power BI proficiency, and AAAI capabilities.

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Data federation was a top priority. EY teams conducted an inventory of Canadian Tire’s customer data, holding some 40 discovery meetings with more than 100 stakeholders over the course of three months. Critical questions included how data was entering the company’s current system, where it was being captured and stored, and who and what programs were generating reports based on that data.

Process mapping revealed nearly 500 data paths with numerous redundancies, resulting in multiple copies of similar customer data sets bogging down the entire system. There were also notable gaps in the data and inconsistencies in how it was sourced and provisioned by stakeholders. EY teams identified 165 data processes to be refined for Canadian Tire’s future state operating model.

“With a massive volume of retail business being transacted and multiple brand banners to consider, this was an energizing challenge for EY teams to take on,” says Alex Mohelsky, EY Global Technology Strategy Lead and Chief Innovation Officer. “We brought in an exceptional team with knowledge ranging across data management, AI and analytics, cloud transformation and change management – we were able to address every aspect successfully while working alongside our Canadian Tire counterparts.”

To strategically leverage data as a competitive advantage, the EY team recommended Canadian Tire realign and configure its existing data architecture and technology investments in a data mesh construct. The proposed platform, built on the Microsoft Azure stack, would unite a distributed domain-driven architecture, self-service design and product focus, helping Canadian Tire cultivate synergies among the legacy silos.

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The new data governance model places decision-making power with a collective federation of domain owners, granting localized autonomy to those who use the data to drive business forward. Shared standards and evaluation metrics were created to address regulatory compliance oversight for a healthy data ecosystem.

One of the most notable outcomes of the six-month transition from centralized to domain-based data architecture is a new, internal data and analytics organization for Canadian Tire. Based on the EY teams’ recommendation, Canadian Tire’s Chief Data Officer and executive leadership made a significant investment in head count as well as technology infrastructure, spearheading the recruitment of nearly 100 data scientists and managers with experience in this emerging field. The expanded Canadian Tire team will oversee data governance and empower Canadian Tire’s various business users to access what they need, creating a data-driven culture across the entire organization with AAAI serving as the engine.

Rather than abruptly shifting all oversight of data and analytics to this new business unit, Canadian Tire extended the EY teams engagement for a full year to facilitate a collaborative innovation lab, where Ernst & Young LLP and Canadian Tire data teams worked side-by-side to build out the new data and analytics architecture. The two teams paired up according to functions and roles so that EY professionals could introduce the system to the Canadian Tire team through structured onboarding, training and coaching. More than 10 experienced EY mentors worked directly with 20-plus Canadian Tire executives to provide knowledge, share experience, and position the new data organization for success.

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A decentralized data model, supported by a smarter technology infrastructure and restructured governance, has unleashed the potential of customer data for Canadian Tire’s business growth. Agile methodology helped coordinate, support and govern the more decentralized approach to foster operational and business success​ for the 24 business units engaged in the transformation.  

New dashboards on the Microsoft Power BI platform enable business domains to harness data in more agile ways. Banners can now use this data more effectively to analyze product performance by stock keeping unit (SKU), applying the results to determine what items should be promoted where, when and how.  

For example, Canadian Tire’s Triangle Rewards Program is now strategically calibrated to match products with buyer patterns, exclusive deals and future marketing potential by capturing high-volume, real-time insights into customer interaction and purchasing trends across digital channels.  

“Retail is among the most competitive of all the industries we work with, and Canadian Tire is in the upper echelon with multiple brands, locations, online outlets and customer incentive programs,” says David McQueen, EY Canada Managing Partner, Consulting; Member, EY Canada Executive Committee. “Data management is of paramount importance to large retailers like this. We needed to bring the strength of experience and current knowledge to get their data models right.”  

Phase 1, streamlining Canadian Tire’s customer data management, led to an encore. EY teams are now supporting a transformation of Canadian Tire’s product data management.  

Canadian Tire may have traveled miles from its original tire store, but the company has never lost sight of its purpose – serving a loyal customer base with speed, stability and forward vision.

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EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

Project Management Support for an International Retailer

Project management support was the focus of a recent Clarkston Consulting partnership with their retail client. The client is a travel experience company turning the world of travel into a world of opportunity by being the “Traveler’s Best Friend” in more than 1,000 stores in airports, commuter hubs, landmarks, and tourist locations. The business’ 10,000+ team members care for travelers as friends at travel convenience, specialty retail, duty free and food & beverage destinations. At the intersection of travel and retail, they partner with landlords and vendors, and take innovative, commercial approaches to deliver exceptional value.

Download the Full Retail Project Management Support Case Study Here

After the development of a new, centralized Project Management Office (PMO) and an urgent need to drive critical business initiatives forward in a structured manner, the client needed to build out the PMO by supplementing current project managers with additional support to drive oversight and guidance across the IT project portfolio – including cybersecurity, infrastructure, field services, enterprise applications, and digital programs.

The client partnered with Clarkston Consulting to manage over 24 projects across the project portfolio and support PMO governance on a project, program, and portfolio level. This led to the management of the client’s newest IT program, Digital Retail Technology, as well as several project go-lives including a new POS implementation, centralizing and simplifying legacy architecture, successful PCI & SOX audits, implementation of next-generation store technology to increase customer intimacy and engagement, and management and oversight of acquisitions expanding the footprint and breadth of store portfolio.

The primary objectives for this project included managing internal projects through various methodologies including waterfall, scrum, KANBAN, and agile. The team provided governance and oversight on the project, program, and portfolio level. Implementing best practices for transparency and consistency within communication among leadership and key stakeholders was a goal for this project outcome, as well as create a repeatable model to apply to the client’s future acquisitions. The resolution produced a successful delivery of retail project management support to critical business initiatives within the client’s digital program, enterprise application program, and cybersecurity program. Overall, communication was improved with the addition of newly developed templates for project and program reporting, a reduction in delayed projects and increased project completion, and IT portfolio project management support.  

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10 CRM Case Studies From the World’s Biggest Brands 2024

• Category : Case Studies , CRM , Marketing
• Last updated on August 2, 2023
• By Viktor. A
• No Comments

It is no news that customers are constantly demanding deeper and more meaningful relationships with their chosen brands. That’s why organizations are currently leveraging CRM software to serve their customers better.

Today, we’ve put together useful CRM case studies from some of the world’s biggest brands. This article highlights CRM case studies uses and vital lessons you can replicate in your business.

Before we proceed, let’s look at the meaning of customer relationship management (CRM)

There are two main definitions of a CRM:

• It refers to a business’s principles and strategies to engage better and retain its customers.
• It refers to a software system that helps businesses to manage client relationships, leads, contacts and campaigns. Also, it allows companies to automate their processes and increases productivity.

Examples of CRM Software for lead generation, contact management, and automation are:

Table of Contents

The Best Overall

A sales-focused CRM that leverages AI to automate sales, lead & demand generation. 

Best Budget Choice

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Best for Workflows

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Best CRM Case Studies

If you’ve ever looked at brands like Apple, McDonald’s, Amazon or even Zara and are wondering how they’re run such conglomerates and still efficient in customer service. Keep reading then; you’re about to find out.

Scott Cook said, Instead of focusing on the competition, focus on the customer. Most of these brands have no superpower. They’ve only learned to focus on only one thing – the customer.

When you’re obsessed with delighting your customers, you will devise creative ways of satisfying them. Let’s go right in.

1. Coca-Cola CRM

The Coca-Cola Company is one of the world’s oldest and most influential brands. With a presence in over 200 countries, Coca-cola started as a carbonated soft drink business. But today, they are a conglomerate with over 200 product lines servicing billions of customers globally.

Logically speaking, for them to exist across several decades and remain relevant and competitive says a lot about their customer service. That said, let’s examine their customer relationship management (CRM).

Coca-Cola CRM Case Study:

Coca-cola’s mission is “ to refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference .”

Inspiring optimism and happiness are at the core of Coca-Cola’s CRM strategy. This is evident in their  marketing campaigns , billboards, brochures, commercials, store locations, and products.

We have billions of transactions a day on Salesforce. And everything is connected collaborative, and mobile.

– Ulrik Nehammer, Coca-Cola Germany, CEO.

Coca-Cola uses several enterprise CRM platforms to manage its clients’ relationships and stores globally. They use Salesforce and SAP primarily for contact management. System Applications and Products (SAP) is a strategic enterprise management platform. It’s quite robust and feature-rich.

While they use SAP globally, they use Salesforce on some of their country divisions to manage their business flow, connectivity, and contact management.

Read our complete Coca-Cola case study here.

2. Zara CRM

When you hear the word “Zara”, what comes to mind is clothing, luxury, and lifestyle. Established in 1975, Zara is a Spanish multi-national retail clothing chain.

They specialize in clothing accessories, beauty, shoes, and other lifestyle products. Zara’s phenomenal success in fashion and beauty is a testament to its solid CRM strategy. They effortlessly delight their customers in a way that leaves them returning for more.

Zara CRM Case Study:

Zara’s mission is to “ give customers what they want, and get it to them faster than anyone else .” Deducting from their mission statement, you can see a wordplay that puts royalty and kingship on their customers.

Zara’s CRM case study aims at elevating their customer’s needs above the company objectives. Zara leverages transparency, incentives and perks, support, personalization, swift check-out, and social media to achieve this.

The success of your business is based in principle on the idea of offering the latest fashions at low prices, in turn creating a formula for cutting costs: an integrated company in which it is manufactured, distributed and sold.

– Amancio Ortega – Founder, Zara Fashion Chain

Zara CRM starts with their website, which has a simple UI and is highly personalized to suit the user’s needs. Then, they’re massively present on social media and contribute to social issues affecting their clientele.

Lastly, Zara’s CRM is not complete without transparency and incentives. They’re transparent in all their dealings and usually deploy incentive programs to delight customers.

3. Unilever CRM

Unilever is a British multi-billion dollar conglomerate that deals primarily in consumer goods and consumables. They are arguably the largest producers of soap globally.

Brands like Unilever that have stood the test of time in quality, customer service, transparency, and consistency are worth emulating. With over 400 brands in about 190 countries, Unilever’s CRM strategy is paying off.

Unilever CRM Case Study:

Unilever’s mission statement is “ to add vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life .”

Unilever’s CRM strategy focuses on elevating people’s well-being and helping them enjoy life to its fullest. This singular aim is the driving force behind their great customer experience initiatives, marketing campaigns, products, and positioning.

It’s about digitizing all the aspects of Unilever’s business to leverage the world of data and increase our digital capability in everything we do.

– Alan Jope, CEO at Unilever.

Another main Unilever’s CRM strategy is centred around Value-Based Procurement. They are keen on supporting their suppliers with upfront value. And they achieve this by empowering their suppliers and distributors with the tools to better relate with them.

They use Salesforce to support their business community and build solid relationships with their partners.

Bayerische Motoren Werke AG, known as BMW, is Germany’s leading automobile brand. They’re a luxury car brand and the  fourteenth largest producer of motor vehicles . BMW cars are known for their standard, uniqueness, and luxury. Let’s examine BMW’s CRM strategy.

BMW CRM Case Study:

BMW’s mission is to “ become the world’s leading provider of premium products and services for individual mobility.”  You’ll agree that BMW has become the world’s leading provider of premium automobile products. But the big question is, how did they get there?

BMW CRM case study is not too distant from the others. Firstly, the focus is on treating customers fairly, which is clearly stated in their  Supplier Programme . Their suppliers and end-users are at the core of their CRM strategy, which has kept them going.

I promise our customers will never have to compromise between driving pleasure and sustainable mobility.

– Oliver Zipse, CEO BMW AG.

Secondly, BMW CRM is focused on producing premium cars to attract new customers and retain the existing ones. And fortunately, it works for them. I’ve seen a couple of folks switch car brands to BMW because their cars are more reliable and have the highest quality

5. Tesco CRM

Tesco PLC is one of the world’s leading grocery and general merchandise retailers. With operations in over 11 countries, Tesco is a hyper-growth company swiftly expanding across territories.

Although it started as a grocery store, it is now morphed into several industries such as banking, technology accessories, and a few others. Not just that, they’ve been named among the top customer-friendly organizations.

Tesco CRM Case Study:

Tesco’s mission statement is  “What we make matters better, together. This statement encapsulates Tesco’s aim to serve customers across cultures and backgrounds.

Tesco is among the first multi-national brand to adopt CRM software. In 2009, Tesco announced that they were adopting the RightNow CRM (now acquired by Oracle).

The key to Tesco’s success is the customer-focused culture that has permeated the company.

– Jeremy Garlick, Partner, Insight Traction.

Tesco’s CRM was primarily used in their call centres to support their electronics division. Aside from that, they used it to amplify their omnichannel communication strategy by managing customer data and interactions across phone, chat and email.

Adopting a CRM helped Tesco be present at all times for their customer when needed across channels. Most importantly, they were able to win the hearts of their customers.

6. Uber CRM

With a presence in 72 countries, Uber redefines how we move and eat. Uber is an American mobility provider allowing people to move conveniently from one location to another. One of the things that makes Uber special is that they’re a mobility startup with no cars. That means they’re servicing two main customer bases: drivers and passengers.

As of the time of writing, Uber has a 72% market share for ride-sharing in the United States, with about 122 million monthly active users

Uber CRM Case Study:

Uber’s mission is “ Transportation as reliable as running water, everywhere for everyone .” In other words, they aim to make transportation accessible at any time.

The big question is, what CRM does Uber use? Uber uses LiveRamp as their CRM anonymizer. Essentially, they LiveRamp CRM to segment users into specific life-cycle stages. It allows them to craft personalized and targeted campaigns that resonate with the customers.

There is a high cost to a bad reputation… it really matters what people think of us, especially in a global business like ours, where actions in one part of the world can have serious consequences in another.”  

– Dan Khosroshahi.

Furthermore, Uber uses CRM to gain deeper insights into how customers use their apps, the frequency, and overall interaction, and even sample their IDs. With these insights, Uber can better serve and delight its customers. More on Uber’s case study here.

7. McDonald’s CRM

As the name implies, McDonald’s is a fast-food conglomerate. They’re currently the leading food service organization operating over 30,000 restaurants in more than 100 countries. McDonald’s expansion strategy is bent on franchises and joint ventures. They also have some sister brands in the fast-fast industry doing incredibly well.

Mcdonald’s CRM Case Study:

McDonald’s mission statement is  to be our customers’ favourite place and way to eat and drink.  Their mission statements depict McDonald’s passion for differentiation, uniqueness, and class.

McDonald’s CRM case study is hinged on their passion for differentiation, which is evident in the architectural designs of their restaurants, food recipe and taste, service delivery, and mode of operation.

Our sustained performance gives us confidence that our strategy is working, as more customers are experiencing a better McDonald’s daily.

– Steve Easterbrook, CEO, McDonald’s.

McDonald’s uses PowerCenter CRM, which is powered by Astute Solutions. This CRM helps McDonald’s efficiently manage their huge volume of customer contacts, analyze data, and manage their store location.

The benefits of CRM software to a business are enormous, and McDonald’s is not left out. They’re equally using it to enhance their marketing efforts and close more deals.

8. British Airways CRM

British Airways is a UK-based carrier and one of the biggest airline groups in the world. They’ve built a reputable brand over the years, which has also given birth to several sister brands.

BA Group is the founding member of the Oneworld alliance. They have over 45,000 employees in 100 countries and assist about 40 million passengers annually. So how are they able to still maintain awesome customer service?

British Airways CRM Case Study:

British Airways’ mission statement is “ To ensure our customers fly confidently that together, we are acting responsibly to take care of the world we live in “. British Airways’ CRM case study is centred around “making their passengers feel confident.”

As we prepare for a safe return to travel, we remain focused on offering our customers the most convenient and affordable testing options to support and facilitate a seamless travel experience.

– Sean Doyle, CEO, British Airways

British Airways uses TCRM BA as its enterprise management solution. The company adopted it in 2002, and since then, they’ve been using it to do the following:

• Campaign management
• Management of loyalty programs
• Leisure database
• External requirements
• Cost savings

Best of all, they use this platform to efficiently manage and schedule all their marketing campaigns internally and externally. They also use for customer service across channels.

9. Amazon CRM

Amazon is an American conglomerate focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. They’re among the top 5 most valuable companies worldwide and one of America’s biggest employers.

Amazon, which started as an online book store, is currently dominating up to 7 industries. Not just that, they’re a customer-centric company famously known for their outstanding customer service.

Amazon CRM Case Study:

Amazon’s mission statement is “ to offer our customers the lowest possible prices, the best available selection, and the utmost convenience .” Amazon’s focus on the customer is truly remarkable.

Primarily, Amazon’s CRM case study follows these four guiding principles:

• Customer obsession rather than competitor focus
• Passion for invention
• Commitment to operational excellence
• Long-term thinking

We see our customers as guests at a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.

– Jeff Bezos, CEO of Amazon

In fact, they aim to become Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work. That drive to become the best led them to create innovative products like I-Click shopping, personalized recommendations, Amazon Echo, and Fire TV, to mention a few.

So, what CRM does Amazon use? Amazon developed its CRM in-house, which they use to manage its customer data across divisions, countries, languages, and products.

10. Apple CRM

Famously known for their slogan, think differently. Apple is a technology company specializing in consumer electronics, software and online services. Apple is the world’s most valuable company and the first to hit a trillion in market capitalization.

Apple CRM Case Study:

Apple’s mission is “ to bring the best user experience to its customers through innovative hardware, software, and services .” Like Amazon, Apple is a customer-centric company that is truly obsessed with its customers.

Apple is also obsessed with its product quality. Their products are highly standardized and unique. And it’s the reason why they enjoy a high level of brand loyalty. Apple’s customers are one of the most loyal sets of customers globally.

Apple CRM case study is centred around four cardinal points: Apple customer-centric outlets, understanding customer needs, Apple ID, & irresistible branding that works. I explained them in detail  here .

Also, like Amazon, Apple uses an in-house CRM to manage its customer data, marketing campaigns, and customer relationships. Apple loves owning their processes, so most of its operations are usually in-house.

Wrapping Up!

These case studies show us the efficacy and formidability of a CRM software. When out to efficient use, it can be a very powerful tool. And it doesn’t matter the size of your business, whether big or small. All you need to do is to pick a CRM that aligns with your business goals and run with it.

Looking for a CRM to start with? Here are our recommendations:  Zendesk ,  Pipedrive ,  Hubspot ,  Zoho  and  Freshsales . Click on any one of them to claim your free trial.

Frequently Asked Questions

Customer relationship management use cases are real-life examples and applications of CRM software and strategies. Like the 10 use cases from big brands listed in this article.

There are tons of use cases for CRM systems, but here are three profound ones: CRM systems can serve as a contact management system, a pipeline system for attracting and converting them paying customers, and a workflow automation station.

Essentially, the main components of CRM are contact and database management, workflow automation, omnichannel marketing capability, and integration options.

Viktor. A is a writer and researcher with experience writing about various topics, including CRM software, SaaS, finance, and technology. When he's not writing, he's swimming and travelling

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Aldi’s Culture, Cultural Traits & Core Values

Aldi’s organizational culture promotes workplace behaviors and human resource capabilities that maximize strategic success. The discount supermarket chain employs its business culture to support human resource potential for a productive workforce. This company culture provides social support for workplace effectiveness, which addresses competition and the related factors outlined in the Five Forces analysis of Aldi . This cultural support ensures business strength against competitors, like Walmart , Costco , Whole Foods , and Amazon ’s e-commerce and brick-and-mortar stores. These competitors and even Home Depot , which is not a direct competitor, influence workplace culture standards for the retail industry and affect Aldi’s work culture strategy.

Aldi’s Core Values . Consistency, simplicity, and responsibility are the core values that determine Aldi’s culture. These core values establish the fundamental principles and philosophy that guide employee behaviors and decisions impacting the retail business organization. With these core values, the company culture shapes human resources in support of business goals derived from Aldi’s mission statement and vision statement . For example, the core value of consistency and the cultural traits of gratitude and kindness create a satisfactory workplace and a great shopping experience that retains customers.

Aldi’s Cultural Traits & Focus Areas

Aldi’s organizational culture involves business goals for human resource development and quality service. The company’s strategic management and human resource management focus on the following areas for employees. These factors become cultural traits embedded into the workplace, promoting job satisfaction and motivating workers to achieve customer satisfaction objectives for retail business growth. The following are the traits that define Aldi’s culture:

• Gratitude and kindness
• Work-life balance
• Emphasis on development
• Cooperation for a great work environment

Gratitude and kindness . Aldi’s management approach involves kindness and gratitude toward employees. Consequently, employees are motivated to adopt kindness and gratitude as traits of their work culture. This cultural trait helps create a positive shopping experience and contributes to the success of Aldi’s marketing mix (4Ps) . For example, this company culture supports satisfactory retail service and complements promotional tactics by motivating workers to engage customers in a positive way. Kindness and gratitude in this organizational culture contribute to a positive customer experience at Aldi grocery stores.

Work-life balance . Aldi’s company culture puts value on work-life balance, which is supported through human resource management and other aspects of the business. As a result, employees value and expect work-life balance, integrating it into their mindset about the retail business and its workplaces. Through this cultural trait, the discount supermarket chain achieves job satisfaction while facilitating Aldi’s stakeholder management and CSR and ESG strategy. For example, with this organizational culture, the company’s CSR/ESG approach aims to satisfy workers’ interests regarding compensation, career development, and work-life balance in the retail business. This means that Aldi’s strategies for various aspects of its business create a multi-pronged solution that supports human resource development and the corporate culture.

Emphasis on development . Career development is a major objective in Aldi’s human resource management. This objective is also built into the company culture. For example, employees value career development and align their behaviors and aspirations accordingly. Workers’ expectations and goals for career development influence their decisions and Aldi’s organizational culture. The company reinforces this trait to encourage a career-focused workforce that benefits the retail business. The implementation of cultural support for career development depends on the divisions, groups, and teams in Aldi’s company structure (organizational structure). This retail business culture develops with some constraints or limitations based on the company’s structural characteristics. Also, the area of job design and human resources in Aldi’s operations management coordinates with this organizational culture to promote career development and motivate workers at the company’s offices and stores.

Cooperation for a great work environment . Aldi’s culture encourages social connections among employees for a great work environment, based on the company’s efforts to provide meaningful and rewarding work experiences. This cultural trait helps workers maintain a positive perspective in the workplace. This perspective motivates Aldi’s employees to exhibit behaviors that positively influence customer perception about the retail business organization. Arguably, market trends, as well as the social and technological factors enumerated in the PESTLE/PESTEL analysis of Aldi , influence the design of the work environment and affect the development of this organizational culture. For example, social trends determine employees’ preferences in the company and human resource management priorities for the design of offices and grocery stores.

Strategic Implications of Aldi’s Company Culture

Aldi’s organizational culture motivates employee behaviors for retail business effectiveness. For example, the company’s gratitude and kindness toward its workers translate to cultural traits of gratitude and kindness that are exhibited in the workplace, including Aldi grocery stores. This condition shows that the company culture contributes to a positive shopping experience that can attract and retain customers.

The emphasis on career development in Aldi’s culture motivates employees to strive for excellence, such as in providing efficient service at the stores. Consequently, this company culture enhances employee productivity and job performance, which are factors that enhance retail business growth and strategic effectiveness. Thus, Aldi’s business culture motivates high productivity and effectiveness among workers while satisfying their personal goals regarding career development.

Considering Aldi’s core values, the traits of the company’s organizational culture reflect a business model that focuses on effective and efficient human resources supporting core retail operations. These cultural traits shape human resource development and the business capabilities for implementing Aldi’s generic strategy for competitive advantage and strategies for intensive growth . For example, this company culture affects workers’ knowledge, skills, and abilities that determine strategy development and implementation in retail operations. Also, this work culture enhances competitive advantages, like the business strengths outlined in the SWOT analysis of Aldi . For instance, the career development aspect of this corporate culture improves employee performance and, consequently, the capabilities of the retail business organization.

• About Aldi .
• Aldi – Explore Our Work Culture and Jobs and Careers .
• Aldi Careers and Jobs .
• Dyer, C. (2023). The Power of Company Culture: How any business can build a culture that improves productivity, performance and profits . Kogan Page Publishers.
• Reis, A. D., & Veríssimo, J. M. C. (2023). The journey of culture and social responsibility and its relationship with organizational performance: Pathway and perspectives. Journal of Organizational Effectiveness: People and Performance, 10 (1), 22-42.
• Riani, A., Asya, V. R., & Yuwono, F. S. P. (2023). Literature study of the effect of corporate culture on work motivation and employee performance. American Journal of Economic and Management Business (AJEMB), 2 (3), 89-93.
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OpenAI has published a case study on Klarna’s AI integration as the fintech company continues to lead the retail landscape into a new era.

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Artificial intelligence has been a major player in transforming the retail landscape. A 2023 report by McKinsey found that in the retail and consumer package goods sectors, the prospective economic impact amounts to $400 billion to $600 billion a year. Additional analysis and estimates from McKinsey put generative AI contributing to $310 billion in additional value for the retail industry by bolstering performance in marketing and customer interactions. 

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A new case study published by OpenAI, the artificial intelligence research company that has transformed the space with ChatGPT, reflects on its relationship with Klarna .  

OpenAI reports that the integration into Klarna’s platform for AI-assisted shopping experience can allow consumers to have a more seamless shopping experience. Customers using the ChatGPT plugin can have a conversation about an item they’re looking for and get suggestions from the software, with product links directing consumers to Klarna’s search and compare tool for price comparisons. 

“We’re proud to partner with OpenAI on a number of initiatives that truly elevate the shopping experience for millions of people worldwide, while creating greater efficiencies for employees internally,” said Martin Elwin, senior director of engineering at Klarna. 

Furthermore, Klarna’s AI shopping assistant , powered by OpenAI, enhances the shopping payment experience for the company’s 150 million consumers worldwide. The assistant, available in 35 markets 24/7, can manage tasks ranging from multilingual customer service in more than 35 languages to refunds and returns.  

OpenAI’s case study found that within the first month of the technology going live, the AI has had 2.3 million conversations — which amounts to two-thirds of Klarna’s customer service chats. Customers can now resolve their errands in less than two minutes, compared to 11 minutes before; Klarna has seen a 25 percent drop in repeat inquiries. The report estimates that Klarna will see a boost of an estimated $40 million in profits for 2024. 

Notably, the AI integration for Klarna is not just limited to customer experiences; the company has also adopted ChatGPT Enterprise for its employee’s usage worldwide. Klarna is now seeing a wide variety of usage cases such as building software and streamlining customer service. OpenAI reports that 75 percent of Klarna’s employees are using generative AI tools. 

“We push everyone to test, test, test and explore,” said Sebastian Siemiatkowski, cofounder and chief executive officer of Klarna. “As Klarna continues to discover applications for OpenAI’s tech, there’s the potential to take the business to new heights. We’re aimed at achieving a new level of employee empowerment, enhancing both our team’s performance and the customer experience.” 

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ABM Students Participate at NGA Show

Gained valuable experience at grocery industry event.

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Students assisted with the "Best Bagger" competition.

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April 16, 2024

Seven agribusiness and food industry management students recently brought home valuable experience and recognition from the National Grocers Association (NGA) Show.

Held at Caesar's Palace Forum in Las Vegas, the NGA Show is a premier event for the grocery industry, bringing together retailers, wholesalers, and a passionate student community that included students from Cornell, University of Findlay, St. Joseph’s University, Arizona State, Kansas State, Auburn, Cal Poly San Luis Obispo and Fresno State.

Students Justin Kipper, Carmen Diaz, Elizabeth Vargas, Ariadna Castro, Megan Ebner, Avalon Anderson, and Irvin Ayon were not just attendees; they were active participants at the show in several activities.

One of the activities was the Student Standout Awards, which tasked them with forming cross-university teams and evaluating hundreds of products and services showcased on the expansive NGA Show Expo Floor.

The floor included 350 companies eager to connect with industry stakeholders. From Center Store and Fresh Food innovations to cutting-edge technology solutions, the students had a front-row seat to the future of grocery retailing.

The cross-university teams each tackled a specific award category: Center Store, Fresh, Health & Wellness, Pharmacy, Operational Services, Sustainability in Store Design & Equipment, and Technology.

Armed with a set of insightful questions, they approached each booth, engaging with company representatives and learning how these products and services could empower independent grocers.

Through these insightful dialogues, the expo transformed into a real-world learning lab for the students, exposing them to the grocery landscapes and giving them invaluable industry knowledge while honing their critical thinking and communication skills.

Best Bagger Competition

Cal Poly Pomona students Castro, Vargas, and Diaz also assisted with the Best Bagger Competition, which puts the spotlight on a fundamental skill in the grocery industry – bagging – and on customer service and company pride.

Grocery store baggers from across the country battled it out for the coveted championship title and a grand prize of $10,000.

The students’ support ensured a smooth-running event and exemplified the collaborative spirit fostered by the agribusiness program.

Student Case Study

In the ever-evolving landscape of the grocery industry, maintaining a competitive edge requires not just adaptation but forward-thinking strategies that anticipate future trends.

This was the challenge the agribusiness management students embraced in the Student Case Study.

Their mission was clear: to revitalize Niemann Foods Inc. by transitioning its County Market stores into B-level stores, rebranded as "Niemann's Market."

Niemann Foods faced the dual challenge of executing a successful rebranding strategy to build customer loyalty while adapting to the changing dynamics of the grocery industry.

The team was comprised of Kipper, serving as the senior program manager, Anderson as head of marketing strategy, Ayon as senior community activities director, Diaz as visual design manager, with valuable contributions from Vargas, Castro, and Ebner.

Under the expert guidance of Lecturer Katie Horvath, a seasoned professional with 15 years of experience in the grocery and consumer packaged goods) retail sector, the student consultant team embarked on a journey to redefine the shopping experience at Niemann's Market

The key questions posed to the student team revolved around creating an integrated shopping experience, aligning the rebranding with future customer preferences—especially in the fresh category—and differentiating Niemann's Market in the coming decade.

The students' proposal focused on leveraging technology and community engagement to revolutionize the shopping experience at Niemann's Market. Their strategic plan included the implementation of Custom Shelf Talkers and new cost-saving Electronic Shelf Labels (ESL) Digital Shelf Tags.

These innovations aimed not only to enhance the in-store experience but also to achieve significant cost savings through labor reduction and efficiency in promotional activities.

Furthermore, the team devised a compelling marketing strategy titled "Look closer, find more at Niemann's," emphasizing the unique value proposition of the rebranded stores. By integrating these elements, the students projected a rate of investment of 73 percent or more, with substantial savings in labor and material costs, while also saving valuable time spent on price changes each week.

Gerry Kettler, Niemann’s director of consumer affairs, lauded the students' presentation, highlighting the impactful ideas they brought to the table.

"Your students rocked the presentation with their ideas! I cannot wait to work with these students," he remarked.

Although the team did not clinch the top prize, their innovative cost-saving initiative caught the attention of independent grocers across the United States, with seven grocers keen on implementing their strategies.

As these bright minds continue to make their mark on the industry, the experience gained from the Student Case Study serves as a foundation for their future endeavors. Their work with Niemann's Market is a testament to the transformative power of innovative thinking in maintaining a competitive edge in the dynamic grocery industry.

The collaboration between Cal Poly Pomona students and Niemann Foods, Inc. exemplifies the potential for academic institutions and industry leaders to work together in addressing real-world challenges.

The students' ability to apply their knowledge, creativity, and strategic thinking to a complex business scenario underscores the quality of education and training provided by agribusiness and food industry management program at the Huntley College of Agriculture.

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Integration of Lean Six Sigma with Internet of Things (IoT) for productivity improvement: a case study of contactor manufacturing industry

• CASE STUDIES
• Published: 04 July 2023
• Volume 14 , pages 1990–2018, ( 2023 )

Cite this article

• Santosh B. Rane 1 ,
• Sandesh Wavhal 1 &
• Prathamesh R. Potdar   ORCID: orcid.org/0000-0001-8896-5322 2  

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In today's era of digitalization and competitive market environment, organizations are more focused on manufacturing quality products at optimum cost to capture maximum business as a variety of options are available to customers for purchasing goods and services. In this scenario, the latest technologies-based productivity improvement can help organizations to achieve set targets of production and ensure the quality of products. In this study, the contactor manufacturing industry has been considered to demonstrate integrated Lean Six Sigma with the Internet of Things (IoT) approach for productivity improvement. A systematic literature survey was performed to understand the concept of Lean Six Sigma (LSS), Define Measure Analysis Improve Control approach and IoT technology. The implementation of the LSS approach reduced the rejection rate of contactors and saved the total production cost (Rs. 51,88,260/-) annually. The annual consumption of grinding wheels has been reduced by 8 quantities to produce the same quantity of contactors. The surface quality of magnets has been identified as a root cause for contactor rejections as it contributes 53.4% of total rejections. The improvement measures are recommended based on the expert's suggestions as grinding wheel dressing must be performed after the completion of a batch of 20,000 parts. The condition monitoring and IoT approach implementation are done by monitoring grinding speed (650–950 RPM), grinding wheel thickness reduction by 0.4–0.6 mm after dressing and dressing of grinding wheel after completion of 20,000 for reducing rejections. This study concluded that industries should implement the Lean Six Sigma approach with the latest technologies and appropriate tools at each stage to set processes to world-class standards and industries should identify opportunities for process and product improvement.

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Avoid common mistakes on your manuscript.

1 Introduction

In a competitive environment, organizations are adopting the Six Sigma methodology for continuous improvements, to deliver quality products or services, to encourage zero defects and to set a world-class manufacturing process. The contactor manufacturing industry is also looking for improvement in contactor quality and quantity as a Contactor is an electrical device used in electrical circuits for making/breaking and it is also known as a special type of relay to ensure safety in a circuit. Contactors are widely used in home appliances, electronic communications, electricity generation and distribution, military and aerospace industries (Wu et al. 2015 ). Contactors must be resistant to arc erosion at high temperatures and mechanical stress. Contactor’s reliable performance depends on thermal stability, welding and temperature resistance, hardness, and high thermal and electrical conductivity (Bahari et al. 2009 ). Contactors are of various types based on capabilities, features and applications. Contactors are designed for a wide range of currents (few amperes to thousands of amperes) and volts [24 Volts of direct current (VDC) to thousands of volts] and manufactured in a variety of sizes to cater various categories of customers. The contactors are made of three crucial components such as coil or electromagnet, enclosure and contacts. The current carrying capacity of the contactor depends on contact’s size, shape, thickness and surface finish. The performance of a contactor mainly depends on the quality of contacts and hence it is a very important component of a contactor. Productivity improvement can help the contactor manufacturing industry to ensure the quality and quantity of contactors. Mahalakshmi et al. ( 2019 ), Mahalakshmi and Arokiasamy ( 2020 ) and Murali and Prabukarthi ( 2020 ) identified bottleneck issues involved in the process and proposed a method for productivity improvement of the process involved in the organization. Mishra and Rane ( 2019a , b ) used the six sigma approach for quality improvement of iron casting. Meena et al. ( 2018 ) implemented the define, measure, pre-analysis, experiment, analyze, improve, and control (DMPEAIC) methodology in the company and achieved a 76.4% reduction of defects in maintenance methods. Tenera and Pinto ( 2014 ) integrated lean management and Six Sigma approaches to reduce waste and manage production processes efficiently. Sunder ( 2016 ) developed a structured stakeholders management model for successful Lean Six Sigma (LSS) project management. Prashar ( 2014 ) adopted the Six Sigma methodology in an organization to identify critical parameters for process improvement. Antony ( 2012 ) presented the strengths, weaknesses, opportunities and threats of the Six Sigma methodology based on the perspectives of leading academics and practitioners. Bidikar et al. ( 2022 ) demonstrated a design for Six Sigma (DFSS) approach using define measure analyze design and verify (DMADV) methodology with appropriate tools and techniques at each stage for the development of moulded case circuit breaker (MCCB). Rane et al. ( 2021 ) discussed the Six Sigma approach using the define-measure-analyze-improve-control (DMAIC) methodology and developed tailor-made solutions (improvement measures) based on lateral thinking to solve the issues related to the manufacturing of the vehicle's electric P20 wiper motor. This survey concludes that the implementation of Six Sigma methodology with appropriate tools can improve the manufacturing industry's productivity.

In this study, the contactor manufacturing industry is considered for productivity improvement. The Lean Six Sigma methodology is implemented based on the DMAIC approach and IoT technology to reduce the waste generated at the time of contactor manufacturing and to improve the process’s productivity. A contactor is one of the leading electrical circuit parts for connecting, breaking and controlling the circuit between power and load. It is used in light load applications and complex machines to control power circuits. Contactors are not designed to provide short circuit or overload protection but can break the contact when the coil excites. A contactor comprises three major components: contacts, magnets, and coil (Fig.  1 ). The fixed and movable magnets are used in the contactor to develop a driving force that helps to close the contacts. As current passes through the electromagnet, a magnetic field is produced, which attracts the moving core of the contactor. The electromagnet coil draws more current initiatives to increase the inductance and the force developed by the electromagnet holds the moving and fixed contacts together. The moving core helps to propel moving contact. As soon as the contactor coil is de-energized, the gravitational force or spring force helps to take the electromagnet core to its initial position, opening the contacts. In the next subsections, the industries’ and customers’ requirements are discussed below to understand stakeholders' requirements.

Schematic representation of electro magnetic contactor

1.1 Industry requirements

The contactor must satisfy all environmental, health and safety norms and regulations.

The contactor must have higher reliability of contact life than other competitive products.

The product must be competitive from the design and cost point of view.

1.2 Customer requirements

The contactor must perform its function without fail under a predefined fault condition.

The contactor must be reliable and reasonable.

The contactor must be compact and easy to operate.

This study was conducted in one of India's largest contactor manufacturing industries. The main objective of this study is to improve the productivity of the contactor manufacturing process. The structure of this article is divided into five sections: the first section presents the introduction; Sect.  2 consists of a literature survey in the domain of Lean Six Sigma, productivity improvement and root cause analysis; Sect.  3 discusses the DMAIC methodology with appropriate tools and techniques; Sect.  4 discuss the technical, statistical and business results; Sect.  5 presents the conclusions, limitations and future directions of study. In the next section, the exhaustive literature survey is discussed to understand the implementation of various tools and techniques used to demonstrate six sigma methodology and productivity improvement.

2 Literature survey

A systematic literature survey was conducted in the domain of Lean Six Sigma, productivity improvement, root cause analysis and Industry 4.0 technologies over the range of the last twenty years (2000 onwards) and referred more than 80 articles from peer-reviewed international journals and publishers (Emerald, Elsevier, Taylor and fancies, IEEE Xplore and others). This survey helped to understand various tools and techniques used in productivity improvement.

2.1 Literature survey on Lean Six Sigma (LSS)

Lean Six Sigma is the systematic approach to improve the performance of the process by removing waste and reducing variation in a process. LSS combines lean manufacturing aspects and the Six Sigma approach to eliminate waste and provide the framework for developing a world-class manufacturing process. Many researchers have contributed to develop a framework for Lean Six Sigma implementation and used the LSS approach for solving different industrial issues, out of which few are discussed in this section. Jones et al. ( 2010 ) used Plan-Do-Check-Act (PDCA) cycle to implement the Six Sigma methodology. Marques and Matthé ( 2017 ) used the define, measure, analyze, improve, control (DMAIC) approach of Six Sigma for reducing the rejection rate of a specific manufactured product due to defects generated in an aluminum gravity die-casting operation. Siddiqui et al. ( 2016 ), Reosekar and Pohekar ( 2014 ) and Timans et al. ( 2014 ) used the Six Sigma approach to solve industrial problems and improve the process. Padhy ( 2017 ) proposed a framework based on the six sigma approach for project selection and enumerated various recent tools and methods required for each stage. Klefsjö et al. ( 2001 ), Singh et al. ( 2021 ) and Ali et al. ( 2020 ) discussed aspects of LSS in Micro-Small and Medium Enterprises (MSMEs) and developed a framework for identifying the barriers to LSS implementation. Nandakumar et al. ( 2020 ), Kaswan and Rathi ( 2020 ) and Barot et al. ( 2020 ) demonstrated the DMAIC methodology of six sigma to solve various industrial problems. Zu and Fredendall ( 2009 ) recognized that Human resource management (HRM) is a critical factor that influences the adoption of Six Sigma in organizations. Pandey et al. ( 2018 ) implemented the green Lean Six Sigma (GLS) concept by identifying and ranking various enablers. Titmarsh et al. ( 2020 ) proposed a framework based on the six sigma approach to achieve sustainable manufacturing requirements based on the perspective of Industry 4.0. Swarnakar et al. ( 2020 ), Caro Teller et al. ( 2020 ) and Costa et al. ( 2021 ) assessed the effects of Lean Six Sigma (LSS) implementation in an organization by comparing financial performance. Costa et al. ( 2018 , 2020 ) used the LSS approach to improve the performance of the food industry. Hynes et al. ( 2019 ) implemented the Lean Six Sigma methodology to improve the turnaround time (TAT) for inpatient peripherally inserted central catheter (PICC) placement. Sommer and Blumenthal ( 2019 ), Steere et al. ( 2018 ) and Belhadi et al. ( 2020 ) discussed the basic principles of Lean management, lean thinking and Green Manufacturing (GM) to improve the performance of organizations. Parmar and Desai ( 2020 ) identified the most significant enabler as organizational readiness, top management commitment and involvement in implementing sustainable Lean Six Sigma in an organization. The comprehensive literature survey in the Lean Six Sigma domain gives good insights and helps to understand the usage of different tools and techniques to solve industrial problems. In the next section of this study, the literature survey is performed in the domain of productivity improvement.

2.2 Literature survey on productivity improvement

Productivity is a strategy-based approach to performance improvement and it also characterizes one of the key goals of an organization for setting the economic growth (Alimohammadlou and Mohammadi 2016 ). Schuh et al. ( 2014 ) and Djatna and Munichputranto ( 2015 ) stated that productivity is one of the organizational success indicators in producing goods and enhancing service quality. Many researchers have contributed to this domain out of a few are discussed in this section. Thangaiah et al. ( 2018 ) conducted a study to understand the customer's preference for beverage products in Tamil Nadu state, India and prioritized using the analytic hierarchy process (AHP) to construct a zero-defect quality matrix. Islamoglu et al. ( 2014 ), Globerson and Vitner ( 2019 ) and Motlagh et al. ( 2020 ) presented a model for measuring the productivity of different processes involved in organizations. Gavareshki et al. ( 2020 ) presented a productive and sustainable integrated management system model to add value to all organizational processes and sub-processes. Gupta and Vardhan ( 2016 ), Kamble and Wankhade ( 2017 ) and Cheah et al. ( 2020 ) identified the key attributes for improving the productivity of processes and performance of various industrial sectors. Kumar et al. ( 2020 ) used the Maynard operation sequence technique (MOST) to reduce cycle time, operation cost and maximize the utilization of manpower after the identification of lean wastages. Khan et al. ( 2020 ) developed a model using Arena software to simulate the caravan manufacturing process. Ismail ( 2018 ), Zahraee et al. ( 2018 ) and Gleeson et al. ( 2019 ) used simulation techniques to improve the productivity of the manufacturing process of industries. Selvam et al. ( 2018 ) identified an optimized spot quantity for different parts with different surface contacts using the Taguchi method (L27 OA). Schuh et al. ( 2014 ), Jiang et al. ( 2017 ) and Marimin et al. ( 2018 ) developed a collaboration mechanism to increase productivity and sustainability of industrial processes. Ghatorha et al. ( 2020 ) discussed lean manufacturing in a press manufacturing industry to improve productivity by increasing the material removal rate of boring operations. TomohikoI et al. ( 2012 ), Kulkarni et al. ( 2018 ) and Nakamura et al. ( 2019 ) examined the effect of market competition on firm productivity improvements and proposed a method to improve process productivity. Kumar Banga et al. ( 2020 ) suggested feasible alternatives to decrease the cycle time and consequently increase the throughput of a batch production system in a sheet metal parts manufacturing firm. Chang et al. ( 2008 ), Rehman et al. ( 2019 ), Dias et al. ( 2020 ) and Mulugeta ( 2020 ) used different tools and techniques to improve the manufacturing process's productivity and eliminate manufacturing waste or non-value-added activities. Ferreras-Higuero et al. ( 2020 ) analyzed robot behavior and drilling phenomena to determine working accuracy and their contribution towards position deviation and uncertainty. Mishra et al. ( 2013 ), Ge et al. ( 2018 ) and Harikrishnan et al. ( 2020 ) identified key factors affecting process and manpower productivity. Marimin et al. ( 2014 ) analyzed the green productivity of a natural rubber supply chain and formulated scenarios for increasing its green productivity level. The exhaustive literature survey on productivity improvement has given insights and helped to understand different tools and techniques used in industries for productivity improvement. In the next section, the literature survey has been performed in root cause analysis to understand the recent and relevant research findings.

2.3 Literature survey on root cause analysis

Root cause analysis (RCA) is an approach to identify the root causes of specific results and it is also helpful for impact analysis in information technology systems (Yang et al. 2018 ) . Schiermoch et al. ( 2020 ) described the use of statistical methods to analyze the root causes for deviations from baselines used to monitor the resource efficiency of the production in dashboards. Liu et al. ( 2017 ), Chi et al. ( 2020 ) and Gurley et al. ( 2020 ) used different root cause analysis techniques such as the functional block diagram and failure modes and effects analysis (FMEA) to investigate the root causes of failure. Mishra and Rane (2018) established a causal relationship between chemical composition and iron casting quality to achieve the global benchmark quality level. Potdar and Rane ( 2018 ) identified the best manufacturer using TOPSIS and Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) for asset propelled industry. Patil and Kothavale ( 2018 ) used the FMEA methodology to analyze the risk involved in the operation of CNC turning centers. Patil and Kothavale (2020) proposed the FMEA framework for the analysis of the CNC turning center. Dweiri and Ishaq ( 2020 ) used a design of experiment (DOE) to reduce the occurrence of breaks and cracks in cable insulation. Potdar and Rane ( 2017 ) identified total 24 critical success factors for the effective implementation of business analytics. Kirkire and Rane ( 2017 ) evaluated factors contributing to medical device development (MDD) using grey DEMATEL (decision-making trial and evaluation laboratory) methodology through an empirical case study. Rane et al. ( 2017 ) demonstrated the reliability assessment process and improvement of Air circuit breaker (ACB) by exploring and eliminating the root causes of failures based on various relevant tools. Yue et al. ( 2018 ) proposed a knowledge model for root cause analysis (RCA) of complex systems based on fuzzy cognitive maps (FCMs) and particle swarm optimization (PSO) algorithm. Rane and Kirkire ( 2016 ) identified barriers related to medical device development (MDD) and developed a structural model. A systematic approach to manage risks during the Medical product development (MPD) process will lead to the development of medical products with expected quality and reliability (Kirkire et al. 2015 ). Jadhav et al. ( 2014a ) explored the barriers to lean implementation in an organization and further developed the framework for sustainable lean implementation using an interpretive structural modeling approach (Jadhav et al. 2014b ). Rane and Kirkire ( 2017 ) explored risk sources in the medical device development (MDD) process and developed a model of interaction among these sources based on contextual mutual relationships. Dandage et al. ( 2018a , b ) reviewed the risk categories which are predominant in international projects and ranked risk categories according to their effect on project success. Dandage et al. ( 2018a , b ) represented various risk categories and barriers to risk management in domestic and international projects through literature survey and feedback from project professionals. The strengths-threats strategy has been applied to develop the strategies for overcoming the various threats caused by the eight risk categories observed in international projects (Dandage et al. 2019 ). Kusneniwar et al. ( 2019 ) proposed a systematic approach to achieve an adequate sealing condition of bite ferrule fitting by finite element analysis of swaging. Boutora and Bentarzi ( 2019 ), Harris et al. ( 2020 ) and Steenwinckel et al. ( 2021 ) used RCA to investigate the root cause of failure and to enhance practice-based learning and implementation. Kirkire et al. ( 2020 ) prioritized barriers of product development in medical device manufacturing industries using an integrated “structural equation modelling” (SEM) and “fuzzy technique for order performance by similarity to ideal solution” (FTOPSIS) framework. Broder et al. ( 2020 ) discussed factors identified in RCA and regulatory considerations relevant to emergency physicians, including Food and Drug Administration (FDA) reporting mechanisms. Arias Velásquez and Mejía Lara ( 2020a , b ) proposed a new methodology of engineering failure analysis to avoid the sudden and catastrophic failure of the circuit breaker. Arias Velásquez ( 2020 ), Duan et al. ( 2020 ) and Zhong et al. ( 2020 ) proposed a framework for root cause fault analysis in a complex process with continuous learning. Abrol et al. ( 2021 ) monitored the health condition of fabricated dye-sensitized solar cells (DSSC) using Accelerated life testing and analytical method. Liu et al. ( 2021 ) presented a new data-driven framework for root-cause analysis based on a spatiotemporal graphical modeling approach for sub-systems of complex cyber-physical systems (CPSs). Liang et al. ( 2020 ) and Molan and Molan ( 2020 ) improved systems-centered RCA by developing optimized information extraction and presentation. Wang et al. ( 2018 ) used a Bayesian network with one child node and multiple parent nodes to describe the relationship between an alarm and root-cause variables. Rane and Narvel ( 2016 ) used cause and effect diagram to investigate the root causes of failure of the air circuit breaker (ACB) mechanism. Rane et al. ( 2019a , b ) used fault tree analysis and FMEA approach for investigating the root causes of failure of Moulded Case Circuit Breaker (MCCB) mechanism. Potdar et al. (2020) investigated the root cause of printing waste in the printing industry using a cause-and-effect matrix. This comprehensive literature survey in root cause analysis has given meaningful insights and helps to understand different approaches used for the root cause investigation of a problem.

2.4 Literature survey on industry 4.0 technologies

The objective of Industry 4.0 is to use the latest technologies for integrating business and operations in such a way that production operations are efficient, flexible and sustainable with high quality and low cost (Wang et al. 2016 ). Industry 4.0 concept is related to the Cyber-Physical-System (CPS), which integrates Internet of Things (IoT) technologies and manufacturing operations to represent smart factories and smart products (Waibel et al. 2017 ). Machado et al. ( 2020 ) developed a conceptual framework based on principles and technological pillars of Industry 4.0. Rane and Mishra ( 2018 ) proposed the discover-innovate-predict-perform-sustain (DIPPS) model for business excellence through analytics and presented success stories of big data analytics and industrial internet of the things (IIoT) from the multiple fields for the breakthrough business results. Mishra and Rane ( 2019a , b ) described the development of a logistic regression and artificial neural network (ANN)-based business excellence (BE) initiative success prediction model. The Internet of Things (IoT) seamlessly integrates different devices, objects and goods to form a physical network in which sensing, processing, and communication processes are automatically controlled and monitored without the need for human involvement (Uddin et al. 2021 ). IoT refers to a system that collects data from a server and saves it on the internet, where it can be accessed by the administrator at any time and from any location (Alaba et al. 2017 ). IoT has features like cloud data technology, self-decision making and strategic action, it enhances machine-to-machine communication, and it improves productivity and customer experience (Rane and Potdar 2020 ). Rane et al. ( 2019a , b ) developed a project risk management (PRM) framework based on Industry 4.0 technologies and demonstrated a framework using the Internet of Things (IoT) technology. Rane and Narvel ( 2021 ) developed a Blockchain-IoT integrated architecture for providing Business Intelligence to improve the agility of Project Resource Management (PRM) process for the EPC (Engineering, Procurement and Construction) industry. Yadav et al. ( 2022 ) developed an Internet of Things (IoT) based efficient and supportive coordinating system for enhancing the coordinating mechanism in Agriculture Food Supply Chain Management (AFSCM) under natural outbreaks. A diversified network of IoT technology creates a large amount of data, yet a single network flaw can have a significant impact on the entire system (Murray et al. 2016 ; Rane and Thakker 2020 ). Chaudhari et al., ( 2023a ) compared conventional and digital technology assisted design methodologies of process heater radiant section and concluded that application of correct method will result in smooth heater operations and commercial benefits. Chaudhari et al., ( 2023b ) developed a ready to implement ‘Industrial internet of things technology’ (IIoT) framework dedicatedly for industrial process heaters. This literature survey has given insights into Industry 4.0 technologies and the usage of IoT technology for process improvement.

2.5 Research gaps based on literature survey

The systematic and exhaustive literature survey shows that there is need to showcase productivity improvement using Lean Six Sigma with IoT technology. In the next section, the case study of contactor manufacturing industry has been discussed by demonstrating Lean Six Sigma approach for productivity improvement.

3 Case study

In this study, one of India's largest and professionally managed contact manufacturing industries is selected, which manufactures contactors with innovative features and performance for various current ratings. The contactors used in the switching of street, commercial and residential lights are considered in this study, which are commonly used in timer-controlled lighting systems. In this type, two coils are provided for opening and closing of the contacts, which are mechanically held in closed position. The data collected for contactor in define phase of research methodology shows comparatively high rejection of contactors, which motivates to improve process productivity by reducing wastage and to make a profitable business in a competitive business environment. The next section of the study discusses the methodology to understand the adopted road map for achieving the objectives.

3.1 Research methodology

The research methodology flow chart (Fig.  2 ) is developed based on the DMAIC approach of six sigma, which starts with an expert interviews, market survey and literature survey to identify industries and customers’ requirements. The exhaustive survey also helps to understand the functionality of the contactor. The problem statement has been articulated as productivity improvement of the contactor manufacturing industry using a Lean Six Sigma approach based on gap analysis, industries and customers’ requirements. The define phase of methodology shows the problem statement, project objectives, and project charter, which further represents the timeline of the project. In the Measure phase of the methodology, a data collection plan and data collection check sheet have been developed to collect three months of data. The collected data has been analyzed using process capability six-pack and established the project's baseline based on standard deviation and mean. The analysis phase shows an approach to investigate the causes of rejections due to surface quality; in this phase, a cause-effect diagram and matrix are used to investigate the root causes of surface quality of the contactor. In the Improve phase, the improvement measures were suggested and implemented after consultation with experts. The data was collected again in the improvement phase to check the process improvement and control phase ensures the sustainability of improvement. The F and T-tests were used to validate the results and further conclusions and future directions are discussed at the end of methodology.

Research methodology flowchart

3.1.1 Research objectives

The following research objectives are derived based on research gaps, customers and industry requirements,

To identify the root causes of contactor rejections.

To develop improvement measures for process improvement.

To improve productivity by reducing the frequency of contactor rejections.

To demonstrate the IoT adoption for performance monitoring of the machine.

The contactor manufacturing industry is manufacturing and testing more than 2000 contactors per day. The surface quality of the magnet plays a vital role in the working of the contactor as the magnets are used to initiate the primary process of the contactor. Pick-up voltage is known as operating voltage and it must be tested for efficient working of the contactor. Pick-up voltage is mainly responsible for the coil's energizing and must fall within the threshold value to avoid future damage to the system. A contactor coil is used to generate the electromagnetic field and excessive wattage in a coil is one reason for the contactor's failure in the testing phase. It is also observed that contactors are failed in the testing phase due to various reasons such as improper assembly and improper or no labeling on the contactor. The test data of the last three months have been collected and sample data of contactors rejection is shown in Table 1 . The collected data shows rejection causes and total rejection of contactors per day. The collected data is further analyzed using the Pareto chart (Fig.  3 ) to identify the main reason for the rejection of the contactor. The Pareto chart shows that 80% rejection of the contactor is due to poor surface quality and excessive pick-up voltage. It also shows that the poor surface quality of magnets is a significant cause for rejection and there is a need for immediate action to reduce the rejections due to poor surface quality.

Pareto chart for rejection of contactor

The manufacturing of moving magnets involves different processes such as grinding, deburring, shot peening, anticorit oil spray and at the end, pick and place unit. The pictorial view of the moving magnet (Fig.  4 ) and sample observations of the moving magnet is shown in Fig.  5 . In this study, the problem statement is defined based on collected data as improvement in productivity from 90 to 95% by reducing the rejections due to poor surface quality of magnets. The project charter is shown in Table 2 , which shows the research objectives and planning.

Moving magnet

sample observation of moving magnet

3.3 Measure

In the measure phase of the Lean Six Sigma project, the data collection check sheet is prepared to collect the data and collected data is shown in Table 3 . The data is collected for more than 200 samples per day and the data is collected for 25 days, which shows data of more than 6200 samples. In the data analysis, randomly 250 samples were selected to ensure the randomness and reliability of collected samples. The sample data of three days is shown in Table 3 and the data is analyzed using the process capability six-pack. The process capability six-pack is plotted for grinding speed, surface roughness and static charge and shown in Figs.  6 , 7 and 8 respectively. The results of the Process Capability Six Pack before improvement are shown in Table 4 .

Process capability six pack of grinding speed (before improvement)

Process capability six pack of surface roughness (before improvement)

Process capability six pack of electro static charge (before improvement)

The following inferences are derived from the Six Packs of grinding speed, surface roughness & electro static charge:

Process Stability The data points in the individual chart present some points out of control limit or more than 3 standard deviations from the centerline. Hence the process is out of statistical control and process is not in stable condition.

Process Normality The histogram of all three parameters is not symmetrical and the p-value is also less than 0.005, which signifies the failure in the normality test, hence the process is not normal.

Process Capability The process capability indices such as Cp & Cpk values less than threshold of 1.33, which suggests the need for improvement in the process as process is not capable to produce quality products.\

3.4 Analyze

The Fishbone diagram (Ishikawa Diagram) is used in the analysis phase of methodology for identifying all the potential causes associated with poor surface quality and Fig.  9 shows the fishbone diagram for the rejection due to poor surface quality. The fishbone diagram represents six key causes, i.e. man, machine, material, method, environment, and measurement along with their branches, which lead to the end effect of poor surface quality. The development of the fishbone diagram is done through brainstorming sessions and cause and effect matrix is used to investigate the root cause of poor surface quality. The various causes explored in the fishbone diagram and effects with their weights are shown in Table 5 . The causes are further divided by the voice of the customer into the categories: Grinding Speed, Surface roughness, and Electro Static charge (Table 5 ) and mapped with effects based on scale [strong effect (10), moderate effect (7), low effect (5), and no effect (3) (Potdar and Rane 2018 )]. The significant causes with the highest total score are considered for further analysis. The matrix shows that variation in grinding speed and excessive wear of the grinding segment are critical causes in the category of grinding speed. Grinding segment specification, hardness of deburring brush and orientation of brush are the critical causes for Surface roughness. The critical causes of poor-quality surfaces are identified by using a cause-and-effect matrix. Failure Mode Effect Analysis (FMEA) is further used to investigate the root causes of rejections and provide solutions. The FMEA approach is used in many fields such as medical, military, and manufacturing and the scale used in FMEA for severity, occurrence and detection are shown in Table 6 . The critical causes identified by the cause and effect matrix are further analyzed by FMEA (Table 7 ) for developing corrective and preventive measures for causes with the highest Risk Priority Number (RPN). The FMEA shows that grinding segment specification and material of magnet holding trays are at high risk, as well as all the causes associated with the variation in surface roughness need immediate attention and improvement.

Fishbone diagram for rejection due to poor surface quality

3.5 Improve

The improvement measures are suggested based on the investigation of failure modes, literature survey, brainstorming activities, and discussion with experts in the improvement phase. In grinding operation, the abrasive grain size plays an important role in achieving the desired surface finish; hence, increasing the grain size can be a possible improvement measure to satisfy the surface roughness limits. It is also suggested that using a smaller grinding wheel diameter for grinding operation can help to get the course surface finish. Similarly, many alternative solutions were suggested by experts in improvement action plans (Table 8 ). The solution selection matrix has been developed by taking experts response based on scale [strong effect (5), moderate effect (4), low effect (3), low effect (2) and no effect (1)] to discover an optimum solution (Table 9 ). The final action plan (Table 10 ) for implementation is developed after the solution selection matrix. Negligence and less competitiveness of operators result in deviation of process parameters, which results in the variation in surface quality. To overcome this issue, experts have suggested to use the latest technologies of industry 4.0 for real-time monitoring of selected parameters. In this study, the Internet of Things (IoT) technology has been used to monitor and control the speed of the grinding machine and grinding wheel thickness to ensure the dressing operation of a grinding wheel. The IoT framework (Fig.  10 ) has been developed to demonstrate IoT technology for monitoring the performance of the grinding machine. In the sensor layer of the IoT framework, the laser triangulation sensor and speed sensors are used to monitor the thickness of the grinding wheel and grinding speed, respectively and the specification of the sensors are shown in Table 11 . The schematic diagram of the grinding machine and the placement of sensors are shown in Fig.  11 . The selected sensors are placed and an electric supply is given through an adaptor. The laser triangulation sensor is mounted parallel to the grinding wheel axis to measure the grinding wheel thickness. The production counter and speed recording are already present in the Human-Machine Interface (HMI) machine, which ease the monitoring process by integrating an alarm light, conveyor belt power supply, laser triangulation sensor, and speed sensor. In the condition monitoring, the threshold values of grinding speed are defined as 650–950 RPM. The machine will stop automatically as the counter-recorded 20,000 parts are grinded and machine cannot be started unless it detects reduction in grinding wheel thickness in specified limits of 0.4–0.6 mm. The reduction in thickness of the grinding wheel shows that the grinding wheel dressing is performed after manufacturing 20,000 parts. In the cloud security layer, the data of all selected parameters are stored in the cloud by using a Local Area Network (LAN), transmission and receiver system. The application layer is the system's front end, which helps to retrieve data from the cloud and derive conclusions after data analysis. In IoT framework, the data flows from equipment layer to application layer whereas decisions flows from application layer to equipment layer. This way, the IoT technology will monitor the selected parameters and ensure the surface quality of magnets.

IoT framework to monitor grinding machine

Schematic diagram of grinding machine with sensors

3.6 Control

In the control phase of the methodology, the data is again collected based on a check sheet for three months after improvement and the collected sample data is shown in Table 12 . The collected data is further analyzed using a process capability six-pack for grinding speed, surface roughness and static charge are shown in Figs.  12 , 13 and 14 respectively. The analysis shows an improvement in process performance and the rejections have been reduced drastically. The process capability six-pack for grinding speed shows that all the data points fall inside the control limits, which shows the statistical control of the process and the process capability indices (C p  = 1.67 and C pk  = 1.38) shows a significant improvement in the process as these values are greater than a threshold value of 1.33. Similarly, analysis of surface roughness shows improvement in process capability indices (C p  = 1.68 and C pk  = 1.60), which represents significant improvement in process and p -value (0.870 > 0.05) satisfies the normality test, which means the process is now stable, normal and capable. The analysis of electrostatic charge data shows that process capability indices (C p  = 1.45 and C pk  = 1.14) have been improved, all data points falls inside the control limits and p-value (0.320 > 0.05) satisfies the normality test, which represents the process is now stable, normal and capable. The above observations show significant improvement in the process and the summary of the results is shown in Table 13 . The sample testing data after improvement is shown in Table 14 .

Process capability six pack of grinding speed (after improvement)

Process capability six pack of surface roughness (after improvement)

Process capability six pack of electrostatic charge (after improvement)

3.7 Validation of results

Validation of results is an important step of research for ensuring process improvement and many researchers have used F-test & T-test to validate the hypothesis of the study out of which few are discussed in this study. Mexia ( 1990 ) demonstrated the duality of F tests and the Scheffé multiple comparison method in the presence of controlled heteroscedasticity to obtain the best linear unbiased estimates. Fritz and Berger ( 2015 ) discussed how to perform the F-test & T-test using Excel and SPSS, and how to interpret the results. Rane et al. ( 2019a ) performed T-test and F-test to validate the results of reliability improvement of the MCCB mechanism. In this study, F-test and T-test are used to validate the results and null/alternative hypothesis statements of grinding speed, surface roughness and static charge.

F-test results for grinding speed (Fig.  15 ) show a remarkable reduction in standard deviation after improvement in the process. The T-test represents the mean of grinding speed (Fig.  16 ) is increased from 665 to 774 rpm and the improved process shifted towards the center of specification limit (i.e. 650–950 rpm). F-test and T-test results are shown in Table 15 and it is concluded to reject the null hypothesis i.e. maintaining the grinding speed within the specification limit has an insignificant effect on surface quality.

test for equal variances of grinding speed (before and after)

Boxplot of grinding speed (before and after)

The result of F-test for electrostatic charge (Fig.  17 ) shows a remarkable reduction in standard deviation after improvement in the process. The T-test represents the mean of electrostatic charge (Fig.  18 ) is reduced from 0.339 to 0.05. F-test and T-test results are shown in Table 16 and it is concluded to reject the null hypothesis i.e. maintaining the electrostatic charge within specification has an insignificant effect on surface quality.

test for equal variances of electrostatic charge (before and after)

Boxplot of electrostatic charge (before and after)

4 Results and discussion

4.1 comparative study of cost saving.

The improvement in the technical and functional areas are satisfied and validated with the help of the F-test and T-test, which represents the value addition of work done. The cost-saving analysis is carried out to get a detailed idea of the improvements in the financial aspects. In Table 17 , the available cost data information is utilized to execute the cost-saving comparative analysis.

Before and after improvement cost details are shown in Table 18 for a comparative study. The reduction in the rejection rate of contactors satisfies the monthly demand of contactors without overtime production cost. The solution of grinding wheel dressing and change in grain size results in optimal wear of grinding wheel, which results in less no of setting and requirement of grinding wheels. In the case of rework on the contactor, previously the rework is carried out only on the contactor with a high electrostatic charge (above a threshold value), but new magnet storage trays eliminate the electrostatic charge close to zero value i.e. average static charge value is 0.05kVA.

4.2 Technical results

The selected solution, expert suggestions and IoT integration ensured the reduction in variation of the process and the comparative study of the technical result is shown in Table 19 .

4.3 Statistical results

The reduction in the standard deviation of grinding speed, surface roughness and electrostatic charge signifies the decrement in variation and shifting towards the target value. The statistical results are shown in Table 20

4.4 Tangible benefits

The rejection rate of the contactors due to poor surface quality is reduced by 43.629 percent.

The total annual rejection of contactors is reduced by 17.51 percent.

The annual productivity of the contactor manufacturing process is improved by 5.38 percent.

The improvement in the process results in annual savings of Rupees 5,188,260.

4.5 Intangible benefits

The reduction in contactors' rejection rate helps to reduce employees' working stress.

The active involvement of employees in process improvement phases helps to improve teamwork and enhance team spirit.

The positive involvement of employees in the DMAIC methodology of the Six Sigma approach improves the problem-solving ability of employees.

The contribution of employees to process improvement increases job satisfaction.

4.6 Implications of results

The Lean Six Sigma approach will add a feature in a process improvement that helps to establish the process performance standards and enhances decision-making.

Organizations must concentrate on nurturing employees' problem-solving skills by developing an exhaustive training plan.

This study has recommended to use of FMEA and the Cause and effect matrix for identifying critical causes of failure.

The usage of appropriate tools and techniques at each stage of DMAIC helps to reduce the process improvement time.

4.7 Managerial implications

DMAIC approach emphasizes to use statistical and process-oriented approaches; therefore, it helps management to make quick decisions related to funding for the project.

DMAIC approach provides a better approach for solution selection with appropriate tools and techniques to ensure that the solution can withstand the essential results.

In a business organization, implementation of IoT technology helps to improve workplace productivity and enhance safety.

DMAIC approach provides an opportunity for team associates to understand the entire value chain of the process and enhance the knowledge sharing among the team members about the complete project.

Implementation of IoT technology can fulfills the preferred goals of the project in the mentioned timeframe, which has a substantial influence on savings in cost and improvements in quality at the process level.

4.8 Lesson learned

The use of DMAIC approach signifies the power of tools for managing problems present in the organization.

DMAIC Sigma approach is a strategy for finding the root causes of the problem and its implementation can help to minimize the cost of poor quality.

The DMAIC approach gathers data in a structured way based on the causes of the problem, which improves the probability of success in processes.

It is recommended to use IoT technology to collect real time exhaustive data based on main parameters to enhance the monitoring and probability of project success.

IoT enable approach nurtures a process thinking attitude and enables quality culture in an organization.

5 Conclusions

This study successfully demonstrated the DMAIC approach for productivity improvement with the help of the contactor manufacturing industry a case study. The proposed methodology identifies the crucial problem using the Pareto chart and survey. The root causes of poor surface quality have been identified using a fishbone diagram, cause and effect matrix and FMEA. The improvement measures are proposed based on the selection matrix and it also shows the usage of IoT technology for live monitoring of parameters. Lean Six Sigma methodology results in improvements in productivity from 90 to 95%, which results in a reduction of total production cost (Rs. 51, 88, 260/-) annually. The development of improvement measures was simple and straightforward, using a creative and data door approach. The suggested improvement measures are more focused for monitoring the critical parameters and training the employees. The implementation of improvement measures results in a reduction in grinding speed variation, improvement in surface quality and reduction in electrostatic charge. A complete and comprehensive treatment along with appropriate validation of results were performed using process capability six-pack, F-test and T-test. The results of the F-Test and T-Test showed statistically significant desirable changes in the process. The deliverables of this research comprise an improvement in material productivity by 5.38 percent annually. The contactor manufacturing industries should continuously monitor the range of critical factors to ensure sustainable performance. This study concluded that the industries should identify the opportunities for productivity improvements and recommended to use Lean Six Sigma, Pareto chart and IoT technology to set their respective processes to world-class standards.

5.1 Limitations and future directions

This case study considered only the aspects of the DMAIC methodology of Six Sigma for productivity improvement. In future directions, the consequence of the Design of Experiments and Monte Carlo simulation can be explored for similar or different problems to develop a prediction model. Industry 4.0 technologies can also be used to enhance process monitoring. This approach can also be used with fuzzy logic to develop fuzzy FMEA and further optimization techniques (Taguchi Method) & algorithms can be used for optimising process parameters of manufacturing industries, where there is a need to optimize processes to reduce waste and improve reliability.

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Rane, S.B., Wavhal, S. & Potdar, P.R. Integration of Lean Six Sigma with Internet of Things (IoT) for productivity improvement: a case study of contactor manufacturing industry. Int J Syst Assur Eng Manag 14 , 1990–2018 (2023). https://doi.org/10.1007/s13198-023-01980-7

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Received : 03 May 2022

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DOI : https://doi.org/10.1007/s13198-023-01980-7

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