Case Study


Donaghy Bros

Project Summary

Donaghy Brothers is Northern Ireland’s leading independent electrical retailer, offering unbeatable low prices on all household appliances.

The original Donaghy Bros store in Kilrea went through major refurbishment and was officially opened towards the end of 2015.

Groundswell and Donaghy Bros kicked off their ecommerce partnership in May 2017. As they operate in a competitive sector a key focus to growing their business online was to ensure we focused on profit and margin.

What We Did
  • - Margin Analysis
  • - Advanced Google Shopping Structure
  • - Price Monitoring Software
  • - Ecommerce Consultancy
  • - Advanced Bidding Strategy
  • - Feed Optimisation
  • - KPI Measurement Plan

Problem

Donaghy Bros compete in an ultra-competitive market (consumer electronics) with naturally low margins on best selling products and price sensitive consumers, they wanted to increase revenue growth but not at the expense of profit and reduce the reliance on best selling products.

Another area of focus for the success of this implementation was price monitoring and ensuring we could bid on products with a competitive market price point.

Solution

We created a Google Shopping framework which focused on a Shopping for Business Objectives approach where every product in the client’s product catalogue was given a High, Medium or Low label, according to its profit margin. This label was then passed into Merchant Centre/Google Shopping.

Based on the profit margin assigned to products, Google Smart Shopping campaigns were organised into separate High, Medium and Low campaigns, each with their own ROAS targets.

Each month we collectively reviewed the previous month’s product performance to identify the top ‘outliers’ i.e., over/under performers. Based on this analysis products were promoted/demoted between campaigns for the following month.

Whilst product Cost of Sale is the main decision KPI other factors were taken into consideration, for example:

  • Stock and supply availability
  • Seasonality
  • Price competitiveness

This means profit margins and assigned labels were continually monitored to ensure both profit margin but also market trends and external factors were considered in the campaign structure.

In addition to High/Medium/Low we also introduced campaigns/labels for:

  • ‘Promotion’ - products we wanted to push and had enough margin to warrant a separate campaign with its own ROAS target
  • ‘Zombie’ - products that had not delivered impressions or may have been overlooked by Google Smart Shopping machine learning. These were put into a temporary campaign and given a very low ROAS to try to give them a ‘kick start’

We have been working alongside Groundswell for a number of years. Groundswell are experienced and professional in their field and we have been able to enjoy growth in our business due to their guidance and advice. We receive daily support from an experienced and highly motivated team, with an end goal of optimising and growing our business. At Donaghy Bros we seen the potential to grow and succeed in the world of e-commerce, with the help of Groundswell we are achieving this by improving ppc bidding campaigns, launching new dsa campaigns, improving on-site features, increasing conversions on a much larger percentage of our catalogue than ever before and finding new ways to drive traffic to our website other than the traditional means. We feel the partnership works very well because of the level of support and experience from the team at Groundswell.

James Donaghy - Managing Director - Donaghy Bros

Results

Full profit margin-based Google Shopping structure with appropriate ROAS targets successfully implemented.

Exceeded ambitious sales targets:

  • 165% increase in Google Shopping revenue
  • 15% decrease in Cost of Sale
  • 116% increase in conversions

165%

Shopping Ads Revenue Growth

138%

Overall Year on Year Growth

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