Background:
In the wake of a worldwide economic downturn, businesses, especially within the consumer goods sector, faced substantial hurdles. Armed with over a decade of document analyst expertise, our task was to unearth and interpret potential growth avenues during this demanding period. Our primary focus was affordable pack analytics, with the objective to gauge the prospective market size, accessibility, and reach of these packs. The end goal – discerning whether the company’s portfolio comprised affordable packs and its readiness to serve budget-conscious consumers amidst a looming recession.
Approach:
The challenge was tackled using a comprehensive strategy involving analytical modeling. The initial step was to ascertain the distribution accessibility and reach of affordable packs across various markets. We analyzed the unique distribution of these packs in the top 60 markets. The effects of broadening the distribution and lowering prices of affordable SKUs in each market were evaluated. A market simulator was employed to assess the combined impact of these strategies on revenue and profit.
Insights:
The analysis yielded several critical discoveries.
- Firstly, we determined if the company’s portfolio included affordable packs, crucial for gauging its preparedness for serving price-sensitive consumers during the downturn.
- Secondly, we estimated the population percentage capable of affording these packs, providing invaluable insights into the potential market size. The strategic grid analysis identified the ease of availability of these packs to target consumers.
- Moreover, the analysis pinpointed the markets requiring proactive actions before the recession.
- Lastly, the opportunity size was quantified at a staggering 1.3 billion unit cases globally.
Marketing Actions:
Based on these findings, several marketing measures were proposed.
- Primarily, the company needed to evaluate its portfolio and ensure the inclusion of affordable packs. Where necessary, new affordable pack offerings should be introduced.
- Secondly, strategies to broaden the distribution and lower the prices of affordable SKUs should be executed in the identified markets. This would help seize the potential revenue and profit opportunities.
- Additionally, the company should concentrate on ensuring the availability of affordable packs to the target consumers, as indicated in the strategic grid analysis.
Outcome:
Implementation of the proposed marketing measures led to favorable outcomes for the company. By including affordable packs in its portfolio and catering to budget-conscious consumers during the downturn, the company successfully tapped into a global 1.3 billion unit case opportunity. The broadened distribution and reduced prices of affordable SKUs in the identified markets resulted in significant revenue and profit growth. The strategic focus on market accessibility and reach ensured that the packs were easily available to target consumers, further strengthening the company’s market position.
To sum up, by leveraging affordable pack analytics, the company expertly identified and capitalized on a global 1.3 billion unit case opportunity during a recession. This approach, which involved estimating distribution accessibility, reach, and market size, as well as evaluating potential marketing actions, led to considerable revenue and profit growth, underlining the significance of strategic analysis and action even in challenging economic times.
