How A Global Beauty Brand Optimized Their Portfolio And Avoided Cannibalization

Price  |      Beauty |  Global

This global beauty and personal care manufacturer has established itself as a leader in the industry, renowned for its commitment to sustainability, ethical sourcing, and innovation.

With a diverse portfolio of skincare, haircare, fragrance, and cosmetic products, the company has built a strong presence across multiple international markets.

Its focus on using natural ingredients and eco-conscious formulations has resonated with consumers, driving impressive financial performance with revenues exceeding billions annually.

The manufacturer sought to optimize their portfolio beyond traditional pricing methods, which were resulting in missed revenue opportunities by failing to account for cannibalization and other market interactions.

Before adopting Buynomics, the manufacturer lacked a reliable method to analyze product interactions across its portfolio. As a result, it applied a uniform 5% price increase across its entire portfolio on the e-commerce channel.

However, because consumers react differently to price changes across products, this approach partly resulted in portfolio cannibalization and shoppers leaving the manufacturer's e-commerce website for other sales channels or competitor products.

By adopting the Buynomics platform, the manufacturer aimed to differentiate & optimize the portfolio pricing while simultaneously avoiding cannibalization to reach revenue and unit sale targets on their e-commerce channel.

Leveraging Buynomics' Decision Guide tool, the Revenue Growth Management (RGM) set the following requirements to optimize the relevant key performance indicators.