Background
A North American CPG company had undertaken market research that had suggested some of its customers were trading down from premium brands to more value-oriented brands – both within its portfolio and to competitors. The company wanted data-backed evidence that this research was correct and, if so, to understand more about these audience groups so they could adjust their media and marketing strategies to reverse this trend.
Solution
We sourced location data and audience attribute data from two of our data partners. We then analyzed the data to understand where the trading down was happening geographically and the different audience profiles that existed in those geographies.
In collaboration with the client, we focused on two audience groups: one that was trading down to its own value brand and one that was trading down to their main competitor’s brand. Our analysis revealed clear differences between the two groups:
- The group trading down within the client’s own brand portfolio was more rural, in a lower income band, and consumed more traditional media (i.e. TV, magazines, and radio).
- The group that moved to the competitor was more urban, in a higher income band, and more digital savvy when it came to media consumption.
Results
The analysis provided data-informed evidence that the company’s initial panel-based market research was correct. It also provided valuable insights that the company is acting on:
- From a media perspective, our insights triggered conversations around whether they should lean more into digital channels and target more urban populations. The insights were also shared with the company’s creative and media agencies to inform their future strategies.
- From a wider marketing perspective, our insights triggered conversations around distribution (e.g. is our product available in enough urban markets?) and strategy (e.g. should we run some tests to determine where we need to pivot?)