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DEMAND SPACES: IDENTIFYING, SIZING AND UNLOCKING GROWTH

Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

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Page 1: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

DEMAND SPACES: IDENTIFYING, SIZING AND

UNLOCKING GROWTH

Page 2: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Business Questions From Client

How do we size and monetize each opportunity? ?

How can I compete with other big players? ?

Where are our products and competitors playing today? ?

Where are the pockets of

opportunities? ?

What are the key innovation opportunities and how can we play?

?

How can I

GROW my business?

Page 3: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

A Fundamental Thinking Change

FROM

Traditional Supply based model

Supply

Demand

TO

New Demand-driven model

Supply

Demand

FROM Traditional

Supply-based model

Market

Follower

TO New

Demand-driven model

Market

Creator

Page 4: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Nielsen’s Demand Framework can Drive Business Growth

INNOVATION

WHERE TO INNOVATE?

How do we better meet

consumer’s demands?

What are the most

profitable new

opportunities?

PRODUCT PORTFOLIO

MANAGEMENT

WHERE TO PLAY?

Where are the gaps in

our existing product

portfolio?

Do we have the right

products to effectively

cover the opportunities?

BRAND

POSITIONING

HOW TO PLAY?

What is the optimal

brand(s) footprint on the

framework? How should

the brand(s) evolve in the

future?

TARGETING &

ACTIVATING

HOW TO ACTIVATE?

What demand(s) should

you target? How could

you play in those targeted

areas? What messages

should you dial up in the

communication?

Page 5: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Case Example:

Identifying, Sizing & Unlocking

Growth in Snacking

Page 6: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Client Situation

Biscuits Penetration in

Developing Markets >90%

Per Capita Consumption

Growth in Developing

Markets <5%

Snacking Demand Spaces

Page 7: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Client Situation

How do you

fulfill the

growth

ambitions?

Snacking Demand Spaces

Page 8: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

TO

Get 1 more

occasion –

steal a

moment from

another

product

FROM

Attract non-

users, get

more usage

or

premiumize

existing base

A Fundamental Thinking Change Snacking Demand Spaces

Page 9: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Sizing and Monetizing the Opportunities

1

2

3

Nielsen RMS Data in each market for tracked categories

Third party data in each market for untracked categories by RMS

Survey data (penetration, basket size, frequency) and calibration model to guesstimate sizes for totally

untracked categories

Page 10: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

“Just 1 more occasion” strategy is sufficient to meet our growth ambitions

$5.5 Bn

Biscuits

1 more occasion

Page 11: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

IDENTIFY the Demand Spaces

84% of all occasions are

explained by When, Why & Where

WHO? WHEN?

WHERE? WITH WHOM? # of people

WHY?

WITH WHOM? Type of company

When, Why and Where will be the key basis of forming the Demand Space

Page 12: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

10 Demand Spaces across 4 Platforms

ME/W

E

WE

ME

LATE NIGHT SNACKING

MID DAY HUNGER

PA

MP

ER

ON THE GO

PICK ME UP

MORNING

KICKSTART

AFTERNOON RELAX & UNWIND

REJUVENATE

ANYTIME SNACKING

FEEL GOOD

BREAKFAST

REWARD

TOGETHER

CONNECT

MAKES MEALS FUN

MID MORNING LIFT

REP

LEN

ISH

Page 13: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

UNLOCKING the growth Prioritize and Understand the Right Demand Spaces

Page 14: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

UNLOCKING the growth Innovate with Right Strategy

Product

Place

Promotion

Price

Packaging

People

Positioning

Page 15: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

Demand-driven Innovation Framework

Differentiating

Innovation Strategy

Based on strategy, develop market offer in cost-

effective way

Complete,

Compliant Innovation

Go-To-Market

Ideas Concept

Development Product

Elements Market

Ready Offer Put in the full

market context White Spaces

OPPORTUNITY CREATION ACTIVATION

IDE

ATIO

N

CR

EA

TIV

E

MA

RK

ETIN

G

EF

FE

CTIV

EN

ES

S

CO

NS

UM

ER

IZA

TIO

N

Time and efforts investing in finding the white space yield in great success of true innovation

Page 16: Finding the White Space of Food and Beverages in a Cluttered Market—Lynn XU

If you have any questions, feel free to contact: Nicole M. Alexander Vice President, Innovation Practice

Greater China +86 182 1739 7202

[email protected]

Thank you