Case Study: Where is the white space to drive sales growth?
Too often, we see brands competing fiercely only in channels of high visibility yet failing to stand out from one another. The competition for sales gain results in fighting for shelf space or cutting prices. Channels with low visibility are neglected as brands are scared to take the risk in the unknown area, or simply do not know how to tap into the market. Without enough comprehension of all channels in the overall market landscape, your brand may miss out the growth opportunities to break the status quo.
Take packaged beverage categories for example, on-premise channels have been critically important for beverage makers, yet information about on-premise channels is either outdated or not consolidated, which makes it difficult for beverage makers to develop intact channel strategy.
Following is a case example of how ROS offers an integrated solution to help companies gain full visibility across existing and potential channels by combining retail audit with consumer research. Our solution provides you actionable insights with channel sizing, opportunity analysis as well as market and outlet level understanding and categorization.
What are all channels that packaged beverages are consumed and what is the size of each channel? Through consumer research, we can re-confirm that all possible consumption channels are included in the scope and then collect consumption information in each channel to build up aggregated sales volume and extrapolate to real market volume.
Is there any performance gap across all channels? Through retail audit, we understand the competitive landscape across all channels, including category-level versus brand-level distribution across channels and further identify market gap for later analysis.
Where are the category/brand channel expansion opportunities – by integrating analysis from both retail audit and consumer research, we gain a full understanding of the market from perspectives of both actual market situation and consumers’ needs, which is to identify the unfulfilled areas in the market. This ensures we are on solid ground to formulate channel strategies that drive business growth.
Which stores are the priority to invest in? Once we identify the channel to prioritize, we can categorize stores under each type of channel and assess attractiveness to determine priority for targeting by collecting information such as number of seats, averaged spending per person, locations (e.g. commercial versus residential, close to MRT station or faraway), etc.
Via Red Ocean Shopper Insight, it’s possible to gain better visibility across all relevant channels for your categories, brands and products. In turn, get clearer direction for formulating channel strategies that improve overall sales performance.