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Case Studies

Home / Case Study 2

K Furniture

8x Return on Ad Spend (ROAS)

  • The Challenge & Objectives

Launching a new business in a fiercely competitive industry is no small feat. K Furniture, an emerging retailer of stylish and affordable furniture, came to us with a formidable challenge: to establish a strong brand presence in the competitive market of South India and lay the groundwork for expansion across other states.

While K Furniture's unique blend of high-quality, affordable designer furniture held significant promise, the lack of brand recognition and historical performance data presented substantial obstacles. Our mission was clear: generate immediate and profitable sales in Tamil Nadu to firmly establish their brand and secure the resources necessary for future growth.

  • Our objectives

Brand Introduction: Introduce K Furniture to the competitive market in Tamil Nadu, India, positioning them as a provider of high-quality, stylish furniture at affordable prices.

Sales & Profitability: Drive immediate and profitable sales through strategic advertising to establish the business and lay a solid foundation for future growth and expansion.

Strategic Expansion: Implement a carefully managed phased expansion plan, starting from Tamil Nadu and extending across India, ensuring profitability at each stage of growth.

Stock Management: Address the logistical challenges of a rapidly growing online business by collaborating closely with K Furniture's logistics team. Provide data-driven insights to manage stock levels effectively, based on the online performance of individual products.

Competing Against Competitors: Equip K Furniture to not only compete but flourish against well-established household-name brands as they expand. Ensure they are prepared to navigate and succeed in this intensely competitive landscape.

  • Our Approach

Recognizing the high user intent on Google Ads and Programmatic platforms, we identified it as the primary channel for K Furniture. We launched with a comprehensive shopping campaign encompassing all K Furniture products to establish a baseline and identify the best-selling items.

Complementing this main campaign, we initiated smaller search and display campaigns to bolster our efforts. As we pinpointed the brand's top performers, our strategy involved gradually diversifying the general shopping campaign into more focused, product-specific campaigns.

Understanding the critical importance of short-term profitability for this burgeoning company, we meticulously evaluated each tactic based on its potential for immediate success and the necessary investment for testing. Prioritizing less risky tactics ensured a strategic and measured approach to achieving rapid, profitable growth.

  • Feature utilized

We utilized Google Tag Manager (GTM) to meticulously track conversions, segmenting audiences into loyalty customers and page view customers. These segmented audiences were then retargeted through site retargeting campaigns on DV360. By categorizing the audience based on their level of engagement, we ensured precise and effective retargeting strategies to maximize conversion rates and enhance customer loyalty.

  • The Results

Our approach delivered significant success, with campaigns becoming profitable from day one. This immediate profitability enabled K Furniture to rapidly scale its production levels, laying a solid foundation for expansive growth. Within the first year of our partnership, K Furniture established a second showroom in Chennai, Tamil Nadu - a testament to the rapid and substantial brand recognition achieved in the region.

The impressive scaling in Tamil Nadu, boasting an extraordinary 25x Return on Ad Spend (ROAS), set the stage for the next phase of our expansion strategy. Over time, the campaigns continued to perform exceptionally well, maintaining an average ROAS of 14x and 8x across Tamil Nadu in subsequent years. K Furniture's confidence in our approach was reflected in their marketing budget, which grew from $3,000 per month to a remarkable 400x increase over the past two years, significantly surpassing initial forecasts.

  • Key Achievements
  • Our campaigns became profitable from day one, driving instant success
  • Successfully expanded into Tamil Nadu within two years, establishing a strong market presence
  • Achieved a remarkable 25x ROAS during scaling in Hawaii, 14x during California expansion
  • Maintained an impressive 8x ROAS over the past few years
  • K Furniture's marketing budget increased by 400x over the past five years, reflecting their unwavering trust in our strategic approach