Case Study 2: Enhancing Market Share
Situation:A global leader in the beverage industry looked to enhance its share position in several key Asian markets. The company was particularly frustrated with a disparity between the high percentage of consumers who claimed that they intended to buy their soft drinks and the actual number that did.
Monitors Effort:Monitor Group leaders brought together resources from the Action Company, Market2Customer and Decision Architects to diagnose the problem and create tools that would ultimately assist in the formulation of action plans for the client.
Action Company consultants reviewed the client's existing distribution capabil ities, marketing efforts and competitive position. They found that while marketing managers closely monitored the needs of customers, the needs of the sales channel were less well understood.
Market2Customer designed and executed a market research study which created a needs-based segmentation for each channel. As part of this work, M2C did a statistical analysis which allowed the client to make tradeoffs between pricing,product mix, and service levels.
Using primary research generated by Market2Customer, Decision Architects built a dynamic market simulation model which allowed the client to test the financial impact of various pricing, product and distribution options.
Result:Shift in management thinking: the client's management team began to realize the importance of marketing to the sales channel, our work led to the formulati on of marketing strategies by channel segment which, in turn, led to more effective utilization of marketing resources.
Development of methodologies for assessing channel needs: the model created by Decision Architects provided a lasting mechanism by which managers were able to evaluate the effectiveness of sales and marketing initiatives continually.
Increased volume: changes to channel service levels, pricing, and product mixresulted in as much as 30 percent increases in volume growth within 12 months.