The challenge
A price-focused new entrant, launched overnight
In 2020, Marks & Spencer launched an online food joint venture with Ocado, a UK pure-play grocer. M&S announced a large own-label range and a commitment to price match, creating a competitive new entrant in existing categories with a compelling price position.
A large ambient food manufacturer asked the CommerceIQ Customer Success team to help it understand the potential impact through the online retailer, and to identify strategies to mitigate the ecommerce risks the venture presented.
01
New category entrants
Identify quickly new category entrants that could directly compete against the client's SKUs
02
A price-focused competitor
Prevent a loss of sales due to a price focused competitor
03
Search visibility
Ensure no loss of search visibility as new products are promoted organically or via paid sponsorship on shelf or in search.
04
Shopper reviews
Assess how shoppers would rate & review the new entrant's range
The approach
Category-level data to answer four key questions
The client knew it needed category-level data to understand the possible ecommerce risks and impacts, so it worked with the CommerceIQ Customer Success team to find answers using the CommerceIQ platform.
Full-category scan
Illustrative
Q1
Which of their brands were most likely to be impacted by the change in range?
Q2
What were the implications for their pricing and promotional strategy?
Q3
Would there be a lasting impact on their brands' visibility through search and how could they take steps to mitigate this?
Q4
How would shoppers rate & review the new range and what would the impact be on the client's position within the category?
The results
At-risk SKUs found fast, and a pack-size advantage uncovered
Using the CommerceIQ platform, the client quickly uncovered which SKUs were most at risk and easily identified the actions needed to mitigate any damage, such as adjusting messaging across the relevant product detail pages.
Access to full-category data also revealed a cost-per-size advantage on key SKUs against the new entrant. That helped the brand validate and refine its retail search and promotional strategies, and was critical to maintaining its category position and continuing to deliver value to shoppers.
Fast
Most at-risk SKUs identified
Quick visibility into where the new range posed the biggest threat, and the actions needed to respond.
Advantage
Cost-per-size advantage
Full-category data surfaced a pack-size advantage on key SKUs, shaping search and promotional strategy.
More
A dedicated ratings and review strategy
The data showed a need to lift the volume and frequency of shopper reviews in specific areas of the range. The client continues to work with Customer Success to define steps and measurable outcomes.
Ready to take your ecommerce strategy to the next level?
Request a demo
