Changing social, political, and economic scenarios have propelled a variety of challenges for companies in the CPG industry. Constantly changing preferences, widely ranging demands, preferences, and needs, and the continuous pressure to evolve are significantly obstructing growth in the industry. Therefore, CPG companies must identify their target customers, segment them as per their demands, needs, or preferences, and provide personalized marketing and offerings. Infiniti’s market segmentation analysis solutions help companies conduct this process, our experts offer unparalleled, data-driven insights, and our engagement has helped companies propel growth, overcome industry challenges, and champion their industry. To leverage Infiniti’s market segmentation analysis solution for comprehensive insights into profitable customer segments and personalized marketing approaches, request a free proposal.
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Market Segmentation Analysis for a CPG Supplier: Business Outcomes (Graphic: Business Wire)
“The need to identify subsets of a market based on demographics, needs, priorities, common interests, and other physiographic or behavioral criteria is becoming imperative for CPG companies to better communicate with their customer segments,” says a CPG industry expert at Infiniti Research.
Business Challenge:
The client, a consumer-packaged goods supplier, struggled to retain customers due to their traditional and unstructured marketing strategies. The company’s competitors developed comprehensive approaches with an in-depth understanding of their customers’ needs, which led to the client losing ground. Due to these factors and the inability to meet customers’ demands, the supplier’s customer churn rate increased by 13%, and they realized the need for market segmentation and personalized approaches. Therefore, the CPG supplier approached Infiniti Research to leverage our expertise in offering market segmentation analysis solutions. During the seven-week engagement, the client sought to personalize marketing strategies, understand customers’ purchasing behaviors, competitively price their offerings, and identify the ideal profitable segments for maximum profits.
Our Approach:
Infiniti’s market segmentation analysis developed a comprehensive approach to assist the CPG supplier. The solution included the following four phases:
- Conducting customer surveys regarding factors such as shopping patterns and preferred channels of purchase
- Segmenting customers into smaller groups as per age, income, value to the brand, and buying behavior
- Filtering profitable customer segments from their target market and conducting manual and statistical analysis
- Developing and conducting demonstrative marketing campaigns for the various categories to evaluate the efficacy of the segments
Speak to industry experts, gain comprehensive insights into the impact of identifying and focusing marketing efforts on customer segments, and why CPG industry players require market segmentation analysis solutions.
Business Outcome:
With the insights gained from Infiniti’s market segmentation analysis solution, the CPG supplier gained a comprehensive understanding of their customers and developed improved, efficient marketing and promotional strategies. The personalized approach helped attract new customers and meet customers’ specific needs. The engagement also helped the client assist their customers and increased their sales rate by increasing up-selling and cross-selling. Additionally, with a better understanding of their customers’ specific demands, the client created niche products, attracted wider segments, and focused their marketing budget on these profitable segments. The supplier substantially reduced customer attrition and increased customer attraction and retention. Lastly, with Infiniti’s market segmentation analysis experts' insights, the CPG supplier achieved sales growth by 19%.
About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to analyze competitive activity, see beyond market disruptions and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us
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