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How a Personal Care Manufacturer Expanded Its Shopper Base Through Portfolio Optimization

 

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+.4%

Predicted expansion of the shopper base

+230k EUR

Predicted incremental revenue increase

Future-proofing RGM with AI

Background

PPA   |    iconscasestudyanon03  Personal Care |    iconscasestudyanon01 Global

 

The Client: A global personal care manufacturer operating across US and Europe with a well-established position in the shaving and grooming category.

The Market Context: The manufacturer competes in a highly dynamic category defined by ongoing innovation and evolving shopper expectations. Recently, the retail landscape has become increasingly complex due to rising prominence of private-label offerings.

The Approach: To safeguard long-term category performance and competitiveness, the manufacturer initiated a strategic review of its portfolio structure and go-to-market approach at one of the main drugstore chains.

Challenges

As competition intensified in the drugstore channel, the manufacturer wanted to reassess its system pricing and portfolio architecture.

Lowering the entry barrier was key to drive migration from disposables, while clearer positioning was required to defend market share against private label alternatives.

Entry Barrier Reduction

Reduce the entry barrier to help shoppers transition from disposables to system razors to accelerate manufacturer’ system penetration and share growth.

 

Competitive Positioning

Strengthen system razor positioning to effectively compete against private labels with a focus on the drugstore channel.

 

Triple Win Strategy

Win for the Manufacturer

  • +4.4% predicted expansion of shopper base.
  • Shoppers shifting away from low-value disposable razors to a new razor system.
    • 70% of new product growth will come from cannibalization of other segments in the portfolio.
    • 30% will be a true incremental recruitment into the systems category.

Win for the Retailer

  • +230k Euro incremental revenue increase is forecasted for a drugstore* because shoppers are predicted to shift from low-value disposables into the systems segment, delivering higher basket sizes, repeat traffic through refills.

*This scenario was done for a single drugstore, but it can be tested and applied across multiple retailers.

Win for Shoppers

  • New razor system makes the systems category accessible to price-sensitive shoppers. Shoppers enjoy a premium shave experience at a fairer price compared to disposables.

Scenario Deep-Dive

01. Delisting

Delisting of a higher priced System Starter and refill*

Delisting of a higher-priced system razor starter kit and its corresponding blade refills, while keeping all other prices and distribution unchanged, to isolate the impact of delisting alone.
Results

Compared to the baseline scenario (last four weeks of price and distribution), delisting the higher-priced system alone resulted in a:

  • –0.4% change in total unit volume

 

*System Starter = razor handle with initial blades; Refill = replacement blade packs only.

02. New product introduction

Introduction of a new System Starter and Refill*

Introduced a new system razor starter kit and its refill packs, while keeping existing products, prices, and distribution the same as the product that was delisted, to isolate the impact of adding a new system option.
Results

Compared to the baseline scenario (last four weeks of price and distribution) introducing the new system starter and refill resulted in a:

  • +4.1% increase in total unit volume

 

*System Starter = razor handle with initial blades; Refill = replacement blade packs only.

03. Price adjustment

Price Adjustment of the newly introduced System Starter and Refill*

Adjusted the price of the newly introduced system razor starter kit and its refill packs, while keeping the rest of the portfolio and distribution unchanged, to isolate the impact of pricing on system adoption and total category volume.
Results

Initially, the newly introduced system and refill were priced at the same level as the delisted product, which had a negative impact. The manufacturer therefore lowered the price of the new system and refill. Lowering the price resulted in:

  • +0.7% increase in total unit volume

 

*System Starter = razor handle with initial blades; Refill = replacement blade packs only.

Results

Using Buynomics, the RGM team was able to model portfolio changes (delisting & new product introduction), adjust pricing and test different promotions to accelerate shoppers’ migration into systems and drive sustainable growth. 

+4.4%

Predicted expansion of the shopper base, shifting  shoppers from disposables into the systems category through a lower entry point and refill-driven model.

+230k Euro

Predicted incremental revenue increase, 
for a drugstore due to the shopper switching segments. 

 

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