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An FMCG marketer identifies the product mix to maximize its reach amongst consumers

Summary

An FMCG marketer wishes to identify a product mix that would allow it to maximize its reach amongst consumers, yet limit the number of product variants. Through a combination of customer surveys and TURF analysis, the marketer is able to clearly identify consumer preferences for the various product variants being envisaged. In addition, an effective segmentation of the total addressable market enables the FMCG marketer to arrive at the strategic direction for launching the optimized product mix.

Business Backdrop

An FMCG company wants to enter the noodles market. The company envisages four flavours, viz, Flavour A, Flavour B, Flavour C and Flavour D. The company wishes to launch a few (not all) of these flavours, depending on consumer preferences. To this end, the FMCG company wants to determine the mix of flavours to launch, so that it can target the maximum number of consumers.

The total addressable market comprises of consumers that have varying types of preferences. Some have a strong preference for a particular flavour and not for any of the other flavours. Others have a preference for two of the flavours, but not for the other two flavours. Again, there are some consumers who like three of the flavours, but not the fourth. The FMCG marketer wishes to satisfy the maximum number of consumers, yet limit the number of flavours to be launched.

Analytical Approach

A survey is conducted on prospective customers in order to gauge their preferences for the four flavours being envisaged, viz, Flavour A, Flavour B, Flavour C and Flavour D.
The survey questionnaire is designed to capture various aspects of consumer preferences, including desirability and buying intent. The questionnaire also captures data on customer demographics. In addition, data is also collected on frequency and monetary value of purchase transactions.

Responses to the customer survey questionnaire are recorded along various scales, such as the Purchase Intent Likelihood scale, the Desirability scale, Ordered Lists, etc. The survey is conducted based on a Full Block Design (FBD) scheme.

TURF analysis is carried out on the survey responses (TURF: Total Unduplicated Reach & Frequency). Results of the TURF analysis enables the FMCG marketer to profile potential consumers in the total addressable market as per the consumers’ preferences for the various noodles flavours.

Based on the size of the different customer segments, the marketer is able to zero-in on its choice of the flavours to launch in order to maximise its market penetration.

Solution Framework

  • Customer Surveys
  • Design of Experiments
  • Survey Analytics
  • TURF Analysis
  • Customer Profiling

Business Benefits

The FMCG marketer is able to clearly identify the strategic direction for launching an optimized product mix that limits the number of product variants and yet maximizes the company’s customer reach and market penetration.

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