How product sales increased by 300 times
How product sales increased by 300 times
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Repositioning children's water in a competitive market to capture the share of major players by working with a product without advertising
Background
Background
This case study shows how marketing works at the product level without aggressive promotion, through the restructuring of positioning, assortment, visuals, and arguments for the sales team.
Challenge
Challenge
A drinking water manufacturer in a market with two strong players dominating the market with baby food and huge budgets. Our product is not selling well because it is not visible on the shelf and people do not understand why they should buy it, except for its low price. However, the market is growing by 25-30% per year, which means that there is potential for sales growth beyond taking away market share from competitors.
Key challenges
The blurred positioning of "baby water, which does not mean anything to customers.
Competitors have formats that we don't have, but they are the drivers of sales.
The visual is pale, doesn't catch the eye on the shelf, and parents pass it by.
There are no convincing arguments for category managers in the networks why we need to give us shelf space.
Production is not loaded with formats up to 2 liters, so there is room for expansion.
My role
My role
I was responsible for strategy, positioning, assortment, design, research, and preparation of arguments for the sales department. I worked directly with production and distributors to teach them how to sell our product to local retail chains and stores.
Strategy and solutions
Strategy and solutions
Step 1. Studied the market through Nielsen data
We understood what exactly is sold by competitors through Nielsen reports, and laid out the sales of competitors by formats: what volumes, what prices, what channels. Therefore, we added formats for different situations of consumption by customers.
Step 2. Reconstructed the positioning.
We changed the positioning from "baby water" to "water that your baby will love" to address the parent's fear that their child won't drink water because it doesn't have a taste, while also meeting the parent's need for a healthy baby who receives essential minerals and trace elements (fluoride, silicon, and calcium) from water for growth and development.
Next, we divided the assortment by consumption situations: small volume (0.33 and 0.5 L) for walking, medium (1.5 L) for home, for the day, so that mom could buy, large (3 L, 6 L) for cooking, for the family for several days, family purchases once a week.
Step 3. Changed the design to bright, noticeable, similar to the leader
Our water was not visible due to the bright, eye-catching competitors. Plus, there were no budgets for an advertising campaign, so we created a striking visual that used the same visual codes as our competitors, so that parents would see us as "one of the main players" on the shelf, rather than as an unknown brand.
Step 4. Conducted research and obtained evidence of our advantages
To convince customers of the right choice, we conducted research that confirmed the benefits of our water: a composition suitable for baby food, sweetness on the tongue, and recommendations from pediatricians.
These data formed the basis of presentations for category managers: "here are the studies and figures, why our product will be bought".
Step 5. We trained the team and distributors and gave them sales tools
A new product, a new positioning, new arguments - all this is useless if the team does not know how to sell it.
Therefore, we conducted training sessions for the internal team and for distributors. We prepared presentations for the institution in retail chains, local and federal. Each format received its own justification, and each argument was backed up with data: research, recommendations from opinion leaders, and the children's own choices.
Distributors were given a story to tell to a category manager or product specialist.
Result
Result
3rd place in the sales volume of the children's water category after key competitors
Brand sales increased by 300 times in the first month after the product's relaunch
Even adults choose water, considering it "more healthy."
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