A leading sustainable & eco-friendly packaging materials company from Canada, with a strong position in the global market, experienced a need to cut down their packaging expenses to provide affordable packaging solutions to price-sensitive industries including food & beverage, and the consumer goods industry.
The company intended to access a wider market by offering affordable options and gain a competitive advantage by positioning itself as a cost-effective option that simultaneously complied with its environmental objectives.
Our team of experts at Research Nester provided its industry analytical solution to understand the presence of competitors and their pricing strategies to win their business without imposing significant cost burdens on the customers.
The growing demand for affordable packaging solutions emerging from rising e-commerce sales encouraged our clients to expand their consumer base. The main objective of the company was to target small businesses and startups since they have limited budget resources and retaining them would be easier. Similarly, the company intended to tap emerging economies with low purchasing power to capture new customers and provide sustainable packaging options to a wide range of audience. However, due to the dynamic and highly competitive environment, the company was clear with its objectives but didn’t have sufficient insight about the global competitors, and the best practices used by them. Research Nester with the help of its knowledgeable team understood the need for analyzing the existing production process of the company to identify areas of improvement to provide valuable support to prioritize affordability by remaining competitive in the market.
By using benchmarking process Research Nester helped our client to assess their present position in the global market to identify key areas for differentiation. Based on these finding effective pricing strategy was developed to stay ahead of the competition and enable zero-waste packaging solutions. To remain completive in the dynamic environment the company was provided with valuable customer insights and identify the factors that impact the company’s competitiveness. The team suggested establishing long-term partnerships to enable high-volume production which will facilitate cost-effective solutions. The customer base of major competitors was examined to identify their target audience and the value they offer to them. This also helped in assessing how competitors are adapting to the latest industry trends and complying with other regulations. Our team also suggested a few major areas where the company should focus to expand its business:
To develop marketing strategies to enhance and capitalize on market opportunities.
Optimize the production process to reduce costs and wastes which would lower overall expenses leading to lower prices for the end-users.
Keep adapting to the changes prevailing in the global market to offer cost-effective solutions.
Increase its market access to smaller businesses and startups with limited budgets to offer them cost-effective options.
Research Nester conducted an industry analysis across the packaging sector to evaluate the major competitors by utilizing several research methods including market reports. This approach helped our client in gaining insight into the competitors’ products, pricing, and marketing strategies. As a result, the company was able to plan for a cost-effective pricing strategy and successfully developed affordable packaging solutions which differentiated them from the competitors with higher pricing. Within a year the company was able to increase in market share from 31% during CY2021 to 39% in CY2022. Besides this, the company also reduced its waste production up to 6% from 9% in CY2021. This helped in cutting down the production expenses and is expected to improve the overall profitability of the business by 2035.