Coop Explores Growth in the Expanding Convenience Market
The Norwegian convenience market holds a strong consumer presence. Market trends show a growing preference for dining out and take-away options. Coop runs 175 stores with café sales, eager to tap into this expanding market.
Challenge
Coop, a prominent European grocery chain with a significant market share in Norway, is renowned for its hypermarkets and supermarkets. In pursuit of innovation, they collaborated with Forma 5 to redesign their café concept. The objective: to provide healthier options and elevate the coffee experience, distinguishing themselves in Norway's expanding convenience market.
Discovery
The Forma 5 team closely collaborated with the client, conducting thorough research using their "The Machine Room" methodology. They identified various opportunities and divided the project into workstreams to develop a strong value proposition.
Brand development
Brand development involved creating a cohesive identity, refining visual elements, and selecting a harmonious colour palette. A logo was crafted to symbolize the brand’s essence, incorporating elements like grinding or circular motion. Fonts balancing modernity with tradition were chosen. Packaging prioritized simplicity and eco-friendly materials. An online presence was established through social media platforms featuring high-quality imagery, defining unique selling points, crafting a positioning statement, and narrating the brand’s story.
Shop format
Forma 5 conducted thorough research, analyzing market trends, customer preferences, layout, traffic patterns, and competitor offerings. Collaborating closely with stakeholders, we conceptualized new shop formats that seamlessly integrated the brand’s identity with the target audience’s desires.
Design and layout were pivotal, aiming to optimize space and enhance ambiance. Meticulously crafted interior and exterior designs reflected the brand, creating a welcoming atmosphere.
Developing an optimized floor plan was crucial, with designated zones for ordering, seating, and pickup, strategically positioning key elements. Utilizing technology solutions and continuous monitoring, we ensured smooth traffic flow, reduced wait times, and enhanced customer experience.
Selecting furniture and fixtures was equally vital, striking a balance between style and functionality, with versatile seating options accommodating various group sizes and preferences, while prioritizing durable materials for high-traffic areas.
Category Management
Strategically focusing on top-selling items, we minimized inventory costs and maximized shelf space efficiency. Negotiating new supplier agreements ensured better pricing and quality control. Analysing sales data and customer feedback guided future purchasing decisions, enhancing product assortment and driving sales, customer satisfaction, and business success.
People:
In our efforts to revamp Coop’s concept, we prioritized the human aspect. We redefined roles, suggested a new organizational structure, and established cohesive team organization. Additionally, streamlined operational processes for staffing, inventory management, and quality control were developed. Our focus on staff training ensured effective execution of the new concept. Employee engagement and communication channels were emphasized to strengthen team cohesion and commitment, driving success in implementing the innovative shop concept.
Implementation of the new concept
Forma 5 actively supported Coop in implementing the new shop concept. Collaboration between store managers, the regional sales department, and the central category team was crucial for quality execution. Valuable insights were gained during the initial pilot phase, addressing equipment and operational matters before further expansion. Comprehensive staff training was conducted to prepare for the new format.
Impact
The client successfully implemented a comprehensive makeover of 5 stores nationwide, completely transforming their look and feel, thereby enhancing the overall customer experience. The results of this initiative were robust, with significant sales increases observed across all stores. Additionally, the streamlined category management approach resulted in notable reductions in SKU count, while strategic partnerships for equipment and products led to considerable cost savings compared to previous solutions.
