CASE STUDY
Quant Analysis
A B2B company leading in its home market aimed to expand into neighbouring markets with a strong portfolio and convincing USPs. Holding nearly 50% market share at home and in one other market, they generated approximately 60M TO.
Their goal was to achieve 30% market share in other markets for significant extra TO. However, with over 10 countries to target, they struggled to know where to start. The MD suggested focusing on fewer initiatives, but comparing opportunities was difficult due to inconsistent country estimates. Without clear goals, taking action was challenging.
Problem:
Without clear goals, expansion is challenging
Solution:
Targets based on quant analysis
Action
We broke the challenge into smaller parts. With success in two markets, we focused on sales rather than refining the selling story. Quantitative models are challenging in B2B without EPOS data for ingredient sales. We developed a top-down model with the client, correlating their sales to consumer volume data from a market intelligence agency, calibrated by their estimated market share in the home market. This model was refined to differentiate own label, branded products, and EU cross-country supply routes. An Excel spreadsheet estimated the potential for each country, mapped onto a European growth potential map.
| Market Size Volume | Estimated Market Share | Estimated Potential Value | |
|---|---|---|---|
| Mill t | Percent | $M | |
| United Kingdom | 292 | 47% | 15.5 |
| France | 315 | 41% | 18.6 |
| Spain & Portugal | 221 | 19% | 17.9 |
| BeNeLux | 236 | 31% | 16.3 |
| DACH | 326 | 21% | 28.3 |
| SE Europe | 195 | 21% | 15.4 |
| Turkey | 287 | 15% | 29.3 |
| Italy | 235 | 22% | 18.3 |
| Poland | 147 | 25% | 11.0 |
| Nordics | 20 | 17% | 1.7 |
| Total | 2,274 | 172.3 |
Result
The map made the results visual and easy to understand, highlighting two key opportunities much larger than the others, providing clear sales focus:
- The client set growth targets for just two countries in the next annual plan. They built a business case for hiring one FTE in Turkey (opportunity #1), a market with significant cultural and language barriers, which also supplies adjacent markets.
- They adjusted customer responsibilities within the existing sales force for DACH (opportunity #2), based on different routes to market.
- The clarity provided focus, acting as a catalyst for future growth.
Inspiration for further reading
‘Where focus goes, energy flows’
Tony Robbins very much emphasises the power of positive thinking, visualisation, goal setting, and the importance of taking action. Books: Robbins has written several best-selling books, including “Unlimited Power,” “Awaken the Giant Within,” and “Money: Master the Game.”