Oblakoff · Retail
How a new product category doubled the chain’s revenue in two weeks
Helped develop a chain of hookah, tobacco and accessory shops from the opening of its first location. A key result was launching a new product category that doubled revenue across the chain.
- Role
- Marketer
- Scope
- The entire retail chain
- Period
- From November 20193 years 9 months
01 / Starting point
A winter revenue decline of up to 40%
The chain specialised in hookahs, tobacco and related products. The business was seasonal: winter revenue fell by up to 40% compared with its usual level.
Our ambitious goal was to do more than offset the seasonal decline: we aimed to double revenue across the chain.
02 / What changed · First test
Tested demand with a small investment
Instead of a large purchase, we started with a limited batch of HQD disposable electronic cigarettes and similar products that were gaining popularity.
Repeat purchases began before the next restock.
Second testing phase
Repeat test
Tested the hypothesis again
Expanded the range to around 50 product lines to make sure the initial demand was not a one-off.
The second test also showed strong demand. New customers arrived who had not previously visited our shops.
This provided the basis for scaling.
Scaling
Rolled out the new category across the chain
Each store added one wide shelf around two metres long.
It held a full range of disposable and reusable devices, liquids and consumables.
Investment in the new stock was around 50% of the value of each store’s existing range.
- Disposable devices
- Reusable devices
- Liquids
- Consumables
Of the existing range’s value invested in the new stock
The chain gained a new product category and an additional customer audience without substantially expanding its floor space.
03 / Outcomes
+100% revenue in two weeks
Revenue doubled across the entire chain
Within two weeks of scaling the new categoryThe growth was more than a short-term spike: the new category retained steady demand and became a permanent part of the range.
- 2 weeks
- Initial demand test
- ≈50 lines
- Range in the second phase
- +100%
- Revenue growth after scaling
Let’s discuss the next step
A project, a role or a new business challenge
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