Turning around market share decline in an environment of intense price based competition
Our client was operating in an industry where competitive offers had become very commoditised. As a result, price based competition was intense. As industry leader, they were losing market share to local players and cheaper imports but did not know how to turn that decline around.
We implemented customer value research and analysis across the multiple customer and specifier groups who influenced the brand and product purchase decision. This determined how much influence each stakeholder group had on the buying decision, and which group had the greatest influence and should therefore be prioritised for marketing communications and initiatives. Prioritised value drivers for each stakeholder group were determined so that our client’s very limited marketing resources could be directed towards initiatives that would most resonate with those groups and have the greatest impact on encouraging purchase.
Determining why a retailer was growing at a slower rate than the market
Our client was a major retailer but was growing significantly slower than the market growth rate. They didn’t know what to do to catch up, let alone secure their share of the growth.
We implemented a discovery process across three ethnic customer groups to determine their priority value drivers and to measure how our client’s performance was perceived in the market -both absolutely and relative to competitors. This revealed that customers in the market thought our client’s retail offering was mediocre at best, with an undifferentiated range of products and brands, and an indifferent shopping experience. Their prices weren’t sharp either. Effectively our client was ‘stuck in the middle’, neither offering an exciting shopping experience nor being price competitive when evaluated by customers against other retailers they could buy from. The study informed a three-year major re-development of the retail shopping precinct, where the customer shopping experience has been upgraded to become exciting in ways that capture customers’ interest, and exclusive brands and product ranges have been introduced that warrant the prices being charged. These experiences combine to drive up customer dwell time and revenue capture.
Determining the best possible market entry into a new market sector
Our client was an established B2B provider looking to break into the B2C part of the industry as a new entrant and compete for consumer markets they were unfamiliar with but could see significant value in. We undertook a two phase market scoping exercise, firstly to measure market size and to determine where the revenue fell across the product sectors and market segments, which competitors they would be up against in each sector and what those competitors’ strengths and vulnerabilities were. In the second phase, consumer market segmentation analyses and customer value research revealed which consumer segments offered greatest reward and growth potential and were most compatible with our client’s current capabilities to attract and serve. The value drivers identified for each consumer segment determined the resonating elements of a market entry value proposition to win targeted customers away from their existing providers.
Identifying prevailing global current and future practice
Our client was a council controlled agency tasked with attracting and retaining migrants to the city to fill skill gaps. These potential new residents had a choice of city to emigrate to globally, so what would attract them? We designed and implemented a ‘deep dive’ desk research programme to uncover migrant drivers of choice when making decisions about relocating their lives. This included validating our findings with global subject matter experts and exploring global best and emerging future practice in this field. The study prioritised best return priorities for resource allocation across a spread of initiatives to drive skilled ‘migrant’ attraction.
Increasing the rate of customer attraction in a niche market segment and firming up defences against erosion of the existing client base to competitors
Our client wished to improve their competitive market performance by increasing their rate of new customer acquisition in a market segment defined by ethnicity due to cultural differences and unique needs. By intensive research and dialogue with customers (conducted in their native language), the key value drivers for this niche segment were determined. Prioritised initiatives were developed in a facilitated strategy development process leveraging insights and understanding gained from the study. The result – a fact-based business case for resource allocation across initiatives designed to drive market share growth.
Informing a fact-based discussion at Board level about the changing nature of the future of the industry and the implications for the business
Our client’s industry, having been stable for many years, was on the verge of rapid disruption, resulting from technological innovation and the emergence of new forms of competition. While the CEO and Board understood the danger of a ‘business as usual’ approach, the question was how to inform a compelling business case for change. We undertook an intensive research engagement into what global experts were predicating for the immediate and longer term future of the industry, including consulting industry subject matter experts. Armed with this knowledge, Board discussions around future strategic planning were informed not only by what was appearing on the horizon but what the clear implications were for the business and how its business model needed to change.