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Case Studies

Ensure my range is meeting customer demand

New Brand Draws in New Category Customers

A major brand’s Beauty Care division was looking for ways to improve its market position in the Hair Care Category in Turkey. The company thought perhaps launching a new product in the category would increase their market share. But first, they turned to dunnhumby to find out what the customers really want.

The insight

A review of the category identified some opportunities, especially to the mid-market segment:

  • The shampoo category was down by 20%
  • 63% of shampoo purchase is done through mid-market baskets
  • Big brands are the ones who appeal to mid-market
  • The company’s more expensive brand is strong with upmarket customers, but weak with mid-market and price sensitive customers
  • In the past, the company had introduced a lower cost shampoo to appeal to mid-market and price sensitve customers, but it was a weak brand with low quality and sales and was delisted in 2011
  • The company had a product that was a successful, good quallity brand in Europe, but wasn’t listed in Turkey yet

The action

The range review with dunnhumby proved that the product that was available in most European countries would appeal to mid-market customers in Turkey, who look for quality products at an affordable price. The mid-market product was introduced to the Turkey market as a full set of shampoo, conditioner, treatment, and hair color.

The results

The product launch in Turkey was a success. It appealed to the largest customer segment (mid-market), bringing sales, category share, and customer number growth both for the company and the category:

  • The product gained 71% of its sales from customers new to the category
  • The product entered to 46,500 baskets in 52 weeks
  • Shampoo category sales rose by 10%
  • The product’s sales are increasing even in non-promotional periods
  • It did not cannibalize from the company’s upmarket brand , which continued to grow 25% in the year since the launch
  • Although 10% of this switch came from the upmarket brand, 64.3% of the switch came from the top five brands with highest category share
  • The mid-market product promotions performed better than upmarket product promotions