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Optimizing Portfolio Architecture to Drive Premiumization

 

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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  Homecare |    iconscasestudyanon01 Global

 

The Client: A leading home care business in India's laundry category operates from a position few manufacturers can match. 

The Market Context: In Central India, mainstream powders remain a dominant
part of the laundry market despite being a declining segment, holding an ~80% volume share and ~70% value share.

The Approach: With a portfolio of iconic brands spanning premium, mid-tier, and value segments covering detergents, fabric conditioners, dishwashing, and household cleaning it reaches most of the Indian households. This scale translates into a commanding over 40% value share, over 40% volume share, and more than 60% profit share. 

Challenge

Turning Premium Wash into Main Wash

The flagship premium powder brand reaches over 70% of Indian households, yet accounts for only ~20% of powder consumption volume. The challenge for the Home Care RGM team was to move the brand from an occasional premium wash choice to the everyday main wash choice.

 

Based on the flagship premium powder brand's S-curve analysis, the target region is in the Explode phase: the market is ready for faster Large Pack adoption. 

Historically, improving the price-value equation versus the mainstream segment has helped unlock this shift in similar geographies.

Tested Strategies Overview

With Buynomics software, the team tested 100+ different strategies, with uptrading and upgrading being the main objective.

The following were presented as the top options:

  1. Price drop from 10% to 25% for only 500g pack

  2. Price drop from 10% to 25% for only 1kg pack

  3. Price drop from 10% to 25% for 1kg and 500g pack

  4. NPDs at a price point of Rs.49 tested for 325g, 350g & 375g

  5. NPDs at a price point of Rs.99 tested for 650g, 700g & 750g

  6. From 10% to 25% price drop for 1kg and 500g packs and NPDs

  7. ...

Tested Strategies Deep-Dive

01. Price Drops

Strategy Tested

1. Price drop from 10% to 25% for only 500g pack

2. Price drop from 10% to 25% for only 1kg pack
Results

  • The 1kg pack is more price elastic than the 500g pack

  • Volume share gains are stronger than value share gains

  • The strongest delta comes from increasing 500g price while reducing 1kg price, making 1kg the more attractive value choice

02. New Product Development

Strategy Tested

1. NPDs tested for 325g, 350g & 375g.

2. NPDs tested for 650g, 700g & 750g.
Results

  • Clear jump in performance between 650g and 700g, with gains tapering beyond 700g

  • Volume is sourced mainly from mainstream powders

  • High delta delivered across both volume and value
Strategy Tested

Price drop from 10% to 25% for 1kg and 500g packs and NPDs
Results

  • Both actions work in combination and reinforce each other

  • Together, they deliver the highest delta

  • Most gains come from competitors in the mainstream segment

Results

After testing different scenarios, the recommended output was to launch the 750g pack, while reducing the 1kg pack price by 10% and increasing the 500g pack price by 5%.

By moving these price points together, the portfolio architecture was set up to push consumers toward the new 750g pack.

 

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