Tag: challenges in retail industry

retail market segmentation

4 Common Retail Market Segmentation Mistakes that You Might be Making

Even the most successful retail companies agree that the ‘one size fits all’ approach is no longer a viable option to survive in today’s exceedingly competitive marketplace. As such, they are using techniques such as retail market segmentation to stay ahead of the game. However, often the lack of preparation or faults in implementation of a retail market segmentation strategy is where companies fail, and this is just the beginning for any retailer looking to segment their audience and better target the most valuable consumers. With over 15 years of experience in engaging retailers in successful retail market segmentation analysis and implementations, experts at Infiniti Research have identified four retail market segmentation mistakes that companies often make and also suggests how to avoid them.

Improve your marketing effectiveness with the right retail market segmentation strategy. Request a free proposal from our experts.

Why do retail market segmentation strategies fail?

 

Retail market segmentation

Defining segments too broadly

Segmenting the customer segments too broadly is one of the most common retail market segmentation mistakes that most companies make. This will consequently make them fall short to a competitor who targets more narrowly. Retailers can successfully create narrow segments by analyzing their customer accounts, website visits, and transaction history. By doing so, companies can better target customers. For instance, a customer who may be frequently purchasing a particular product and may be interested in a new and improved version of the product that the company is planning to launch. Although this might be challenging to achieve at the moment, but it would be more feasible when over time more and more data is gathered.

Not aligning business by market segments

Successful retailers tend to create market focused teams or segments which later gets organized into a market-focused business model. This allows the customer communications and transactions to be more targeted, consequently, making the business more streamlined. Businesses who refrain from doing so are more likely to find their retail market segmentation strategy fail.

By segmenting your customers into different, narrow subcategories, you’ll create more targeted experiences for them that result in better marketing and a better ROI from your marketing efforts. Get in touch with our experts to know how we help our clients achieve this.

Managing segments locally

Some businesses that operate in a smaller market currently tend to set up their retail market segmentation strategy to only apply to their local or regional organization. Although this may work well at present, in the long run when the business grows there are chances that the retailer will get blind sided by a more dynamic global economy.

Unclear retail market segmentation results

An effective retail market segmentation analysis should provide the company with strategic direction to move forward. Furthermore, it should also provide a clear idea of which markets are the most viable to target. If a retail market segmentation research does not meet these requirements, then it is an indicator of a failed approach. So, before beginning, get your research team together and clearly define their goals and the information you’re aiming to get.

Learn more about Infiniti’s solutions for retail businesses.

CPG industry

Trends That Will Shape the Consumer-Packaged Goods Industry in the next Decade

Looking back, there has been tremendous and thrilling growth in the global consumer packaged goods (CPG) industry. Top companies in the CPG industry have been successful in launching innovative products to meet an ever-growing array of customer needs and desires. Furthermore, we have also witnessed these companies rapidly expanding into the burgeoning consumer markets of the developing world. Making this breakneck growth was only possible and profitable through aggressively building global scale along every part of the value chain. Strategies including increased margins and weighting of portfolios toward fast-growing categories in the CPG industry have delivered stellar shareholder returns.

However, over the next decade, the CPG industry can expect tremendous changes due to the upheavals in global consumer and supply markets. For instance, Asia is expected to take over the West as the main consumer market, which means that companies in the CPG industry will be expected to display new levels of value and innovation. In this article, we profile some of the potential future CPG industry trends that will have a significant impact on the competitive advantage of companies operating in this sector.

The upheavals in global consumer, retail, and supply markets over the coming decade threaten to wreak havoc on established business models and marketing approaches. Request a free brochure to know how our solutions can help you stay prepared.

Global CPG industry Trends

CPG industryNew consumers in emerging markets

In the years to come, the growth of emerging markets will continue to outstrip the growth of the developed world, and that too by a wider margin. Emerging countries in Asia including China, India, and Indonesia currently have a significant share of growth in the global CPG market. This share is expected to show a rise over the next decade. As a result, the global middle class will expand dramatically. However, it would prove highly challenging for players in the CPG industry to meet the demands of these customer groups. Success in winning over these customers will require adequate market segmentation and innovation to meet their needs.

Rise of the digital consumer

Technology has undoubtedly played a major role in the growth of the CPG industry. It will be truly disruptive in the coming decade. Companies in the CPG industry will face some major strategic questions in identifying how to win in this new digital world —including how to build a successful business through online retail channels, how to build brands and categories in a socially networked world. They would also need to gain a better understanding of how to exploit technology-driven opportunities to understand consumers more deeply and connect with them more often.

Request a free proposal to learn more on the changing trends in the global consumer packaged goods market and how we can help you formulate strategies to meet the changing consumer expectations.

Shift to value

A recent study by the experts at Infiniti Research suggests that over 50 percent of consumers in the US have been driven by the financial crisis to seek more value offerings. This shift can have a major implication on the consumer packaged goods industry’s profit formula. Much worse, it could even erode the pricing power of brands. Companies are employing a variety of strategies to address such CPG industry trends. Some brands are rationalizing their price lists to help retailers control SKU proliferation. Others are even riding the shift to value by running joint promotions with private-label brands in adjacent categories.

Learn more about our solutions for business : 

ir10

Biggest Challenges in Retail Industry Right Now

challenges in retail industry

Customers today are no longer forced to make a purchase decision by comparing a few options that are available. Rather, they are now bombarded with dozens or even hundreds of options to choose from. Therefore, one of the key challenges in retail industry is for companies to differentiate themselves from the other players and consequently improve their visibility in the market. Furthermore, waning brand loyalty as customers tend to switch from one brand to another based on what best serves their requirements now proves to be a unique challenge for modern retailers. They now need to find innovative ways to appeal to both existing and potential customers.

In this blog, retail industry experts from Infiniti Research highlight some of the biggest challenges in retail industry this year and how reliable retail industry data coupled with effective market intelligence solutions can help oust such roadblocks.

We understand that businesses face several challenges in retail industry while identifying and curating high-value customers to develop marketing strategies and maximize profitability. Request a free brochure to know more about our solutions for the retail industry and how we help clients identify market trends, opportunities, and challenges in retail industry.

Challenges in retail industry 2019

Consumers moving to multi-channel buying experiences

Technology has been a major boon to retailers and customers alike, however, they also play a major role in propelling the challenges in retail industry. As consumers are seamlessly moving between online and brick and mortar platforms for shopping, they are becoming more open to retailers who can facilitate these transactions. So, companies that want to thrive in this sector must heed to such retail industry trends and focus on creating top-notch customer experience across all platforms.

 Demand for impeccable customer experience

Brand loyalty largely depends on the customer experience. The level of effort taken to enhance customer experience is directly proportional to the customers’ likelihood to engage in repeat purchases with a brand. However, this is currently one of the key challenges in retail industry as creating a significant customer experience requires retailers to dive-deep in customer details in order to understand their customer better. Providing personalized experiences by identifying customer preferences could contribute to delivering great customer experiences.

Siloed marketing infrastructure

Effective marketing today requires companies to engage with their target customers across various platforms. Multi-channel communications are essential in driving the creation of seamless customer experience. But this could also prove to be one of the major challenges in retail industry because with so many different channels customer data could be siloed. In case all the elements of the marketing department are not working in synergy, chances are that customers could be overwhelmed with conflicting or repeat messages.

To gain a competitive edge in the retail industry despite several ongoing trends and challenges, it is vital to adopt a data-driven approach coupled with the right solutions that can transform this data into meaningful insights. Request a free proposal to learn how our market intelligence solutions can help overcome challenges in retail industry.

How Infiniti’s solutions can help retailers overcomes these challenges?

Creating a winning proposition in today’s complex retail environment requires a superior business strategy, resourceful operations, attractive merchandising, targeted marketing, and the use of reliable technology. We provide strategic market intelligence solutions and help our clients identify challenges in retail industry and use their key performing metrics to facilitates quicker decision making and better customer service. Get in touch with us to know more about our market intelligence solutions for the retail industry.

GET IN TOUCH

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.