Customer Story

Veritas Studio Wines

SAP Digital Consumer Insight

opportunity

GAINING A BETTER UNDERSTANDING OF AN EVER-CHANGING NEIGHBORHOOD 

SAPSOLUTION

SAP DIGITAL CONSUMER INSIGHT

Veritas Studio Wines is a small, boutique wine shop located in the heart of the Hell’s Kitchen neighborhood of Manhattan in New York City. Just under two years old, the shop has seen steady year-over-year sales growth and expects continued gradual growth as the neighborhood expands – but competition is fierce. There are at least eight other wine shops within an eight-block radius of Veritas. All but one have been open for many years longer with established customers and more prime locations, often on a main avenue or a corner location, or both. Veritas is located on a side street with low foot traffic and has to depend on guerilla marketing tactics, like handing out and posting flyers, to help attract new customers.

Veritas Studio Wines wanted to get a better understanding of who is coming through the neighborhood and when foot traffic was highest to help better manage store hours and pin-point customers. Instead of looking at their own location, Veritas wanted to use SAP Digital Consumer Insight to take a snap shot of their top competitors.

TheData

Who are they?

With new construction and new buildings opening up on a regular basis, Hell’s Kitchen is attracting younger and younger residents. The data showed that nearly 50% of consumers in the area are between the ages of 25-34 and nearly 20% are ages 35-44. Gender-wise, the neighborhood is slightly skewed towards men (52%).

For Veritas Studio Wines, understanding the basic demographic make-up of the Hell’s Kitchen population is important to developing a strong relationship with the community. It appears that most of the neighborhood is young to relatively young (under the age of 44) so Veritas has to maintain an image that will appeal to this age group.

Wine is daunting and intimidating to many so it is important that Veritas maintain an approachable and welcoming image and environment so “young” and less experienced wine drinkers will feel comfortable when visiting the shop. Likewise, understanding that the neighborhood is pretty much split between men and women also points to the importance of female staffing and presence in the shop.

When is the busiest?

Footfall at both locations spiked during the afternoon around 2:00 p.m. and continued to build through 10:00 p.m. before dropping dramatically at that hour.

All of Veritas’ competitors open in the morning, as early as 8:00 a.m. The hourly footfall trend indicates that morning hours are the lowest traffic times in the neighborhood, and thus opening early is unlikely to yield many more customers. The hours between 1:00 p.m. and 10:00 p.m. provide the highest number of potential customers. By opening later, Veritas can focus staffing on the busier footfall hours, which will result in better customer service and efficiency in hourly wages paid.

Where are they coming from?

The top ten zip codes of consumers in Hell’s Kitchen proved to be a bit surprising. There was an equal amount of consumers from Hell’s Kitchen as there were from other Manhattan zip codes. All Manhattan zip codes were on the West Side of Manhattan stretching all the way to the George Washington Bridge, bypassing the Upper West Side completely and areas below 42nd Street. There was also a portion of consumers from Northern New Jersey, which we can attribute to various Hudson River ferry services which are located in Hell’s Kitchen.

Knowing the top zip codes for both competitive wine shops, Veritas can focus marketing efforts within Hell’s Kitchen, with the exception of the New Jersey residents. Veritas should continue with their current marketing efforts through flyers and posters, but also give consideration to advertising locally to help build better awareness throughout the entire Hell’s Kitchen area.

Since wine is a very personal thing to many wine consumers, Veritas should also consider hosting an event with local businesses, like large apartment complexes, fitness clubs, beauty salons, and craft studios, to build relationships with the customers of those businesses. This will provide a benefit to the businesses they partner with and their customers, but also expose a new group of residents to the Veritas brand. As for the consumers from Northern New Jersey, Veritas should look at expanding its marketing efforts to include NY Waterway, NY Water Taxi and Midtown West Ferry Service, all located just blocks from Veritas Studio Wines.

Impact

Better Understanding of Data Makes for Better Customer Service

Though the neighborhood is growing rapidly, it is evident that Hell’s Kitchen residents stay put and that the neighborhood is attracting little to no residents from other Manhattan neighborhoods like Chelsea, the West Village and the Upper East Side. Based on the data, we now know that:

Hell’s Kitchen is Youthful

Veritas Studio Wines needs to maintain a brand that is embraced by a younger wine drinker. This means accessibility and value orientation.

 

Efficiency

By focusing hours of operation between 2pm and 10pm Veritas Studio Wines can better serve customer and maintain fixed costs in terms of hourly wages paid.

Targested Messaging

Given that most of the consumers in area are residents, marketing messages and activities should be focused within Hell’s Kitchen. However, there is also a presence of consumers from Northern New Jersey. To target New Jersey consumers, Veritas Studio Wines should market at commuting spots, like NY Waterway.

 

SAP Digital Consumer Insight provided Veritas Studio Wines with the information they needed easily, within 15 minutes, and for the price of a single report ($439). With these critical insights Veritas was able to make important strategic decisions about staffing, operating issues, and branding and marketing, which will save the company money and help it grow.

You can learn more about SAP Digital Consumer Insight at the SAP Store.

“I thought I understood the neighborhood completely but wanted to reinforce my beliefs. SAP Digital Consumer Insight confirmed some notions I had, but gave me some insights that will save my business thousands of dollars annually and help me provide better service for my customers. It also provided me with direction as to where I should focus my energy in terms of marketing and messaging.”

Katherine Frey

Owner, Veritas Studio Wines