Australian Electronics Organization Sparks a Competitive Advantage

The Business Issue

Our client needed to differentiate in an immensely competitive and undifferentiated category, and needed to deliver a sustainable, competitive advantage.

The Background

The category was becoming increasingly competitive and fragmented with new entrants and new products every month, while the average selling price was declining rapidly. It was becoming increasingly difficult for the client to sustain its market leadership positioning. They needed to know which consumers were the right ones to target moving forward in order to maintain a profitable business.

The Solution

Research International Australia undertook a two-stage consumer immersion study to better understand how people were using their products, attitudes, needs, and the ways they were shopping the category. Stage one consisted of in-home and in-store ethnographic interviews to uncover the key parameters defining the category. Stage two was a large usage and attitude study designed to quantify these parameters and to create actionable, identifiable consumer segments.

The Business Value

Our client developed a clear understanding of which consumer segments deliver the highest value to their business and how to reach them with the right message and the right products. The segmentation has changed the way the client thinks about consumers: all marketing and business plans are now centered around target segments. Brands have been aligned to meet the needs of different segments, media campaigns focus on specific segments, and retail experiences built around specific segments have delivered improvements to the bottom line.