CASE STUDY

Growth Through Successfully Entering a New Market Segment

 

Situation: A leading beer brand wanted to increase volume and accelerate their growth rate. Research suggested that the Hispanic market could provide them with an excellent growth opportunity. An estimated 12.8 million adult Hispanics drink beer and, on average, they consume 23% more beer per capita versus their general market cohorts. However, the client did not know how to successfully enter this market.

Core Strategy Group’s Approach: Core Strategy Group worked with the client to build the right internal competencies to answer their pressing questions including elements of effective segmentation, in-depth understanding of different types of segmentation, statistical methodologies, data constraints, and alternative segmentation applications. We leveraged all three levels of competency development (knowing by doing) by delivering the curricula on-the-job.

Step 1: Identify The Key Brand Target.

Quantitative research was conducted to understand Hispanic consumers and their attitudes, needs and behaviors toward alcoholic beverages, beer, and brands. Consumers were then segmented into seven unique segments, the Hispanic representation within each of these segments was identified, and their corresponding demographic, attitudinal, and behavioral characteristics were determined. Each segment was then prioritized in terms of their size, affinity and projected future growth for the beer brand and key Hispanic targets were then selected.

Step 2: Assess the Brand Growth

Once key targets were selected, the growth opportunities for the brand were translated into consumer behavior implications (e.g., how many more beers current users drink; how many incremental occasional drinkers were needed) with specific objectives to increase brand penetration, frequency and share of requirements.

Step 3: Develop Go-To-Market Strategy.

A Go-To-Market strategy was then developed for each key segment to maximize the growth opportunity. A new Hispanic Brand Positioning was developed and tailored to the needs of each segment, new strategies were created to drive behavior and intended results, and strategic guidelines were instituted for each marketing element to measure effectiveness.

Results: The new Go-To-Market approach energized the brand. Strategies differentiated by attitudinal segments, occasion and need states in key priority markets led to the development of guidelines around what to start, stop and continue doing—allowing for a better optimization of the marketing mix. The brand evolved from being one-dimensional to a better-balanced, multi-dimensional brand that drove preference among the key Hispanic target segments. With the new brand positioning in place, the company was poised to grow among Hispanics by 33% in the next five years. Hispanics are now predicted to constitute 50% of the overall growth of the brand in the near future.

The Core Strategy Group Difference: The problem that most companies face is that while markets have changed fundamentally, the practice of marketing has barely changed at all. Core Strategy Group combines traditional business focused marketing discipline with the aggressiveness and drive of an insurgent strategic model. It is a model built for clarity, speed and impact. This is the new model for companies who are serious about improving their market performance, revenues, share and return on marketing investment. It provides the most effective way for any organization to compete—and win.