Problem

A regional retailer with stores across New York State had been investing significantly in various broadcast media channels but lacked clear visibility into the effectiveness of these expenditures. Despite consistent spending, leadership was uncertain whether these investments were generating meaningful returns at the store level.

The CEO and executive team sought to understand:

Which advertising channels were driving measurable impact
Whether store locations were optimally positioned to capture target demand
How advertising spend could be better aligned with customer behavior and regional dynamics

Process

Nova Research Group implemented a comprehensive, multi-phase research strategy to evaluate both advertising effectiveness and market alignment.

Advertising & Audience Analysis: Assessed current media spend across channels and analyzed the demographic profiles being targeted
On-Ground Store Research: Visited multiple store locations to observe customer behavior and gather qualitative insights from customers and staff
Stakeholder Interviews: Engaged with internal teams, including marketing and operations, to understand existing strategies and assumptions
Field Studies: Conducted research across key shopping venues and regions where target customers were most active
Online Panel Study: Executed a structured panel study to evaluate broader market potential and validate emerging insights

This integrated approach allowed us to combine real-world observations with data-driven analysis.

Outcome

Our analysis enabled the client to gain a significantly deeper understanding of their market and advertising performance.

Identified three distinct consumer segments (strata) based on store location, inventory, and customer behavior
Mapped psychographic profiles of each segment and aligned them with macro-level market data
Developed a narrowcasting advertising strategy, tailoring messaging and media channels to each high-value segment

Within one year, the client achieved:

More efficient allocation of advertising spend across channels
Improved targeting of high-growth customer segments
Strategic reinvestment of savings into expansion opportunities in high-potential markets

This resulted in both cost optimization and improved market penetration, positioning the client for sustained growth.