STRATEGIC GROWTH OPPORTUNITY ANALYSIS
THE CLIENT PROBLEM Our client, a leading CPG player wanted a clear growth strategy for 2025. They wanted to understand changing consumer behaviour, market dynamics, and future trends for a specific category so that they could make the right choices across markets, brands, segments etc, to drive profitable growth. THE AQ SOLUTION AQ worked as an analytics partner with the client s strategy team and: Determined the shift in market dynamics by analyzing the past performance of the category for the last 10 years. Identified and sized current opportunities with strong future potential. Forecasted 2025 performance for the client s brand portfolio across geographies and major segments. Our holistic analysis required aggregation of data from varied sources like local Nielsen databases, EuroMonitor, brand health, media, H&E studies, consumer panels, internal company data etc. Data collection had it s own challenges in terms of limited availability, inconsistency across formats, geographies & time periods.
THE CLIENT BENEFIT We developed a framework to guide actions. We wove a story that explained the present & future landscape of the category, synergising the information which we had gathered from multiple data sources. We answered questions like: How had the client and category grown in the past? What were the missed opportunities and why were they missed? What were the threats faced? What was the impact of addressing/not addressing these opportunities and threats for the corporations? We defined what the market performance would be if our clients chose to continue on a business as usual agenda without any new disruptions. We helped the client define their category strategy, identify opportunities and size them in order of priority. The insights from these studies were shared with leaders across geographies to drive focussed growth across markets. KEY PROCESS AND OUTPUTS WE ANALYZED THE CURRENT BUSINESS AND ITS STRENGTHS AND WEAKNESSES 2% of super cells contributed to 70% of turnover growth and profit growth. Winning cells by TO growth 2013-15 Turnover Winning cells by OPAT growth 2013-15 Profit 70% 2.1% (12) Market 1 70% 1.3% (7) Market 1 Brand 1 Brand 2 Brand 1 Brand 2 97.9% (570) Market 3 98.7% (627) Market 3 30% Market 2 Brand 5 30% Market 4 Turnover growth Cells OPAT growth Cells
WE DIAGNOSED PAST EXECUTIONAL FACTORS TO IDENTIFY WHAT WAS DONE WELL OR COULD HAVE BEEN DONE BETTER Overall we were spreading media spends too thin. (1 out of 2 brands, and 2 out of 3 campaigns are underfunded) Latest spends relative to AIM 129 144 134 121 Total cells Latest spends relative to MAC 163 173 182 164 43% 43% 53% 45% 17% 28% 25% 33% 57% 57% 47% 55% 83% 72% 75% 67% 2013 2014 2015 2016 FC Under invested Cells 2013 2014 2015 2016 FC Over invested Cells WE ASCERTAINED OUR CLIENT S RELATIVE POSITION AND FUTURE PROSPECTS ACROSS VARIOUS SEGMENTS We were losing where we were strong and losing in the premium segment, and this would only get worse in future. % Category share by segment Client Value share chg. latest year 2015 2019 2022 BPS trend Luxury 5% 8% 10% -150 Super Premium 15% 20% 22% 0 Premium 23% 21% 21% 0 Value 24% 22% 20% -125 Mass 33% 29% 26% -270 We re under-prepared to lead future market growth, with no representation in the largest segments of the future.
WE TRANSLATED CATEGORY AND BRAND PERFORMANCE ASSESSMENT INTO OPPORTUNITIES AND THREATS There was an opportunity to grow + 343m if our client gained a fair share of segments and markets. 1 Opportunities by segments 3 Opportunities by markets x segments 150m Category sub segment 1 108m Category sub segment 2 Biggest cell opportunities m Market 1 (Sub category 3) 66 Market 2 (Sub category 1) 27 2 Opportunities by markets Market 5 (Sub category 2) Market 6 (Sub category 1) 26 23 Biggest country opportunities $m Market 5 (Sub category 3) 22 Market 1 106 Market 4 (Sub category 4) 20 Market 2 Market 3 Market 4 Market 5 74 50 30 30 Market 3 (Sub category 3) Market 3 (Sub category 2) Market 2 (Sub category 2) 20 19 19 Market n...... Market 1 (Sub category 1) 16 WE PROJECTED OUR CLIENT S PORTFOLIO GROWTH AND GLOBAL MARKET SHARE BASED ON THE CURRENT PERFORMANCE AND CATEGORY FORECAST If we continued to deliver below-category growth, we would miss out on 760m of turnover and loose a further 40% of our global market share. Revenue bridge - bn Share 3.0 2.5 0.76 2.60 2.0 1.5 1.25 0.36 0.23 1.84 40% MAT APRIL 16 1.0 0.5 0 Client TO Business as usual 2025 Innovation funnel 2025 Total 2025 Gap Targeted 2025 TO Estimated reduction in client s global market share
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