Key takeaways:
- A North American food and beverages player is concerned that profits might stay flat in the days ahead.
- The business knows the remedy lies in price optimization, but lack of granular pricing data is holding back this exercise.
- With deep and accurate CPG market research around in-store pricing, limited-time price reductions, and competitor pricing, our experts helped the client lift revenue and profitability.
Introduction
Revenue growth and profitability were stuck in the doldrums at a North American food and beverages business. Low visibility into the metrics on in-store prices, limited-time price reductions, and competitor price points threatened to hamstring growth. Our experts in CPG market research stepped in to make these granular pricing insights accessible to the client’s C-suite, and the consequent impact on the revenue and profitability front is noticeable.
Client Success Story
Category | Details |
---|---|
Client | A food and beverages business of 10 years’ standing. Location: North America |
Challenges | The client finds it hard to meet near-to-long term sales targets and the business is bracing for margin pressures. |
Our Solution | Our experts in CPG market research enabled the business to reset price points based on competitor prices and buyer price sensitivity metrics. |
Benefits | The client is experiencing improved sales rates and profits have reported a significant jump. |
Client
Our client is a decade-old food and beverage business focused on healthier alternatives to traditional convenience foods and drinks high in carbs and calories. Based in North America, the business’s product lines have expanded to include meat, poultry, sea foods, carbonated and non-carbonated soft drinks, as well as bottled water. Supermarkets, corner shops, wholesale clubs, discount groceries, and gas stations are the key sales channels.
Business situation
Dynamic changes in consumer buying patterns are key issues for the CPG sector at large. Besides, earnings have stagnated and there is significant inflationary pressure on food and beverages prices. As a result, CPGs must deal with a scenario where consumers demand more by way of promotional pricing and discounts. However, these sales strategies can put CPGs at a disadvantage by thinning profits. To lift margins and revenue, our client needed to manage its pricing more optimally, but this is a ticklish issue. Because without in-depth CPG market research around in-store pricing, limited-time price reductions, and competitor pricing, it’s next to impossible to optimize pricing and drive revenue.
Our solution
Our experts in pricing analysis set to work with the client and began monitoring competitor price points in real time. These price dynamics would feed into the client’s pricing framework, thus enabling their marketing and accounting teams to change pricings on the go. Leaning on our proprietary public data gathering technology, our experts compiled billions of pricing data observations from across key competitors and store point-of-sale (PoS) systems. Tracking the latter enabled the CPG to stay on top of limited-time price reductions. Historical sales data garnered from PoS machines, customer transaction records, and online sales tools also provided vital clues to customers’ sensitivity to price changes. This apart, our CPG market research teams made ample use of face-to-face interview, online surveys, as well as first-hand observation and capture of qualitative customer data.
Benefits
Pricing data aggregated by our experts in CPG market research, as previously outlined, is serving as a basis for our client to set price points that are at par or slightly lower than those of the competitors. By thus arriving at the most optimal prices for products, our client succeeded in boosting sales and profitability while addressing customer needs, preferences, and motivations more accurately than before.
![](https://files.infinitiresearch.com/wp-content/webp-express/webp-images/uploads/2024/06/image-2.png.webp)
How can Infiniti Research help you with its solutions?
Dynamically evolving consumer preferences are driving fundamental changes to the global retail and CPG industry almost on a daily basis. Highly focused, creatives and promotional campaigns that resonate with specific customer groups are crucial to success in the sector. Our advanced CPG market research is strictly tailored to help businesses put more skin in the personalization game, build stronger customer relationships, and create more meaningful brand interactions. Backed by more than two decades of firsthand industry expertise, our experts have enabled several marquee clients with the CPG market research they need to build highly rewarding “1:1” experiences with the customer.