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How a global personal care manufacturer optimized its portfolio in Asia to gain market share

 

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85%

Accuracy by Buynomics’ software

Up to 9%

Forecasted revenue increase for total portfolio

*85% accuracy achieved for 80% of portfolio units.

Future-proofing RGM with AI

Background

PPAPricing    |    iconscasestudyanon03  Home & Personal Care  |    iconscasestudyanon01 Global

 

This global home and personal care manufacturer has a diversified portfolio across home care, beauty and wellbeing, personal care, and nutrition. The company operates in multiple regions and channels, including modern trade, traditional trade, e-commerce, and out-of-home.

Within its Home Care division, the laundry team set out to optimize the liquid detergent portfolio in Southeast Asia to better match shifting consumer budgets and competitive dynamics.

The objectives were to restore a clear price–value ladder, improve and accelerate conversion from powders to liquids.

Challenges

In 2024, the laundry market underwent a shift: premium liquids declined, while mainstream and economy tiers gained share.

An imbalanced portfolio and unclear price positioning caused the manufacturer to start losing market share.

The team needed a clear action plan for the liquids portfolio — to convert powder users, trade up lower-tier liquid users, and restore the premium mix.


Market share lost


The price index of the premium liquid exceeded the intended gap versus the mainstream offer, weakening its price–value proposition.

 

 


Imbalanced portfolio


The portfolio was skewed toward large packs with high out-of pocket prices, which are less attractive during a downturn.

 

 

Unclear price positioning


The manufacturer lacked clarity on the optimal price positioning for the liquid category across bottles and pouches.

 

 

Tested Strategies

1. Premium liquids segment optimization

Strategies Tested

Using the Buynomics software, the manufacturer tested a total of 50 different strategies to identify the most effective ones across the entire product portfolio. The following were presented as the top options:

  1. Reduced the price by 6% for the 3.6L bottle
  2. Reduced the price by 12% for the 1.8L bottle
  3. Reduced the size and price of the 3.9L bottle
  4. Reduce the product sizes by 100 ml
  5. Introduced two new sizes: 2.5L and 2.6L

 

Results

After further evaluation of all five strategies, the manufacturer decided to proceed with four of them, resulting in the portfolio adjustments needed to regain market share in the premium liquids category.

 

The manufacturer decided not to pursue the scenario involving a 6% price reduction on its 3.6L laundry detergent (strategy 1), as the expected impact was minimal and margin-dilutive.

 

2. New Product Development

Strategies Tested

The manufacturer introduced two new liquid detergent SKUs in the 2.5L and 2.6L size range, each priced at 145,000 VND with the 25% availability target.

 

 

Results

 

Launching a new medium-sized bottle would improve affordability and attract new liquid buyers, which would give a competitive advantage. The forecasted impact on the portfolio:

+4% volume increase in total portfolio

+7% revenue increase in total portfolio

+9% volume increase in the liquid segment

+13% revenue increase in the liquid segment

–3% volume and revenue decline in the powder segment

 

3. Reducing the product size

Strategies Tested

The original portfolio consisted of 1.8L, 2.8L, 3.6L, and 4.1L bottles.

The manufacturer decided to reduce the 2.8L, 3.6L, and 4.1L sizes by 100 ml while maintaining the existing price points.

 

Results

This strategy contributed to establishing the optimal price per gram and per pack for liquid bottles. The forecasted impact on the portfolio:

+1% volume increase for total portfolio

+1% revenue increase for the total portfolio

+2% volume increase for the liquid segment

+2% revenue increase for the liquid segment

–0.5% volume and revenue decline in the powder segment

 

Impact

A total of 50 scenarios were tested to identify the optimal outcome. Ultimately, four scenarios were approved by leadership with high confidence, using Buynomics as an indicator of expected impact. Using Buynomics’ Virtual Shoppers AI, the manufacturer gained a deeper understanding of shopper switching behavior.

These insights were instrumental in determining the ideal price per gram and per pack for both bottles and pouches, addressing affordability challenges while attracting new liquid buyers.

 

85%

Accuracy by Buynomics’ software*

 

up to 9%

forecasted revenue increase for total portfolio

 

*85% accuracy achieved for 80% of portfolio units.

Make better RGM decisions, faster!

Run agent-based simulations with Buynomics’ Virtual Shoppers AI to optimize all revenue levers, capturing cross-effects, cannibalization, and competition.

2-4%

Profit impact*

95%

Predictive Accuracy*

80%

Faster Decision-making

*Depending on data quality and completeness