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Quantifying risks helps shaving products company fight rising competition and regain market share

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By better understanding the competitive landscape vs. a niche online market segment, enabled the client to regain its market share

 

Business Challenge

In the Western Europe shave-care products market, our client faced increasing competition from fast-growing (>250% growth YoY) online competitors which were undercutting the share of the leading products. The client needed to retain its growth trajectory by increasing consumer base, increasing consumption rate and offering right price & product mix.

The Solution

Fractal recognized a significant drop in the average ticket size of spends indicating the rise of low cost competitors, which posed a big threat to the client’s shave care business in Western Europe. Fractal provided:

  • Customer Segmentation for a much richer view of the type of consumers interacting with competitors
  • Segmentation criteria based on various attributes of the purchase behavior
  • A deep-dive analysis into each consumer segment to create multi-dimensional shopper profiles
  • Shopper profiles that provided answers to the size and frequency of consumer spends, their preferred channel of transaction and most popular categories of spend

The Results

Gained a holistic understanding of a niche market segment to enable Fractal’s client to better understand the shopper and recognize high potential consumer segments.

Insight

  • Understood the subscription business model and sensed the opportunity in this emerging segment
  • Quantified consumer’s engagement level with the competitor’s offerings
  • Profiled shoppers via deep-dive analysis to identify potential consumer segments and create an apt targeting strategy

Impact

  • Through Fractal’s insights, client was able to study market landscape of this niche market segment: online wet shave-care with a subscription model.
  • The risk posed by the emerging players in this segment was quantified and a reaction plan was created.

Innovation

  • Credit card transactions data was an excellent substitute to conventional CPG data sources, which do not capture market activity happening through non-standard channels and emerging category segments.
  • The client has now identified a rich and granular data source which can be fused with its existing data to strengthen the consumer knowledge and gain deep insights into the shopping behaviour.