How to enhance Market Intelligence Reports with Big Data?

In marketing strategies, cannibalization refers to decreasing sales revenue, volume, or market share. This happens because of a company introducing a new product. In E-commerce, some companies approach intentional cannibalization to reduce the prices of their offerings. This allows them to benefit from the host of customers that gather to buy the discounted product. 

Therefore, infusing a momentary change in consumer behavior is cannibalization. When evaluating projects, the estimated profit that you generate from a new product needs to decrease by the earnings from the sales that have been lost.  

Cases of Cannibalization for Companies

One common cause of cannibalization occurs when companies do not plan out their expansion as well, opening their retail stores in proximity. Having stores too close to each other can mean that two branches of the same store can compete against each other to get more customers. The potential for cannibalization is imminent when you can expand at a location with many retail stores.  

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Cannibalization is a critical challenge when executing strategies for marketing, especially when an enterprise needs to extend its brand’s output. When you carry out brand extension from one sub-category to another, there is a chance that part of the organization’s workforce will take over the next.

Gradual Plan Obsolescence

This process helps overcome issues of cannibalization from an existing marketplace. The reason for gradual plan obsolescence includes inventory levels, contractual arrangements, and the profit margin for the existing product is higher than what the new product anticipates.

In another situation, it might be that the product loyalty may not easily transfer to the new product. Nevertheless, if the profit margins of the new product are better than the existing one, the company does not mind having new products cannibalize the older ones. 

However, companies welcome cannibalization when you reinforce the brand by demonstrating continual product improvement with new products. Introducing new products can help increase the brand’s value in the customer’s mind.  

Related: “Which mall should I choose to open my new store?” 

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Today, many businesses embrace the power of data and use data to formulate their daily decisions. Understanding their local markets based on reliable consumer data is very important for sales and marketing teams. You have to keep in mind that the market in one city is not the same as the market in the other. Market intelligence reports bring consumer data into your hands.  

This report also contains critical insights on crucial economic indicators and consumer buying habits. If you are looking to enhance the market intelligence report and become more strategic, then integrate big data into it. 

Using Big Data for Market Report

In the last decades, data analytics have helped revolutionize the marketing industry and allowed businesses to employ and measure their return on investment effectively. Every online transaction made, whether through banking or shopping, leaves large data footprints and contributes to the generation and collection of datasets.  

For businesses, Big Data gives them a competitive edge in modern markets. How a business was conducted in the past is not different from what consumers want today. They are ready to pay for products and services which are more personalized and have a better interaction design to boot.

According to studies, about 59% of the global population is present online, which means that users now live in a highly connected world. You create multiple touchpoints from different mediums as you move along different devices and channels.

Big Data, in this instance, can be pivotal when it comes to creating highly specialized market reports. It helps keep track of all online interactions. Market reports that utilize big data turn broad-spectrum audiences into better targets and offer personalized solutions for businesses.

Market Intelligence and Business Intelligence

If you start with market intelligence, then that entails a lot of insights in terms of what the competition does and what the market is doing. It also tells you what the customers are doing and how they are likely to behave. On the other hand, business intelligence is the link between customers and companies and how businesses can refine their strategies to suit the market competitors and target audience.

To understand the market better, businesses have to conduct a market report. This report can provide you with a full spectrum of information about the market and its strategies.

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Some companies might call market intelligence reports strategic intelligence reports. This is because these reports allow businesses to formulate strategies for moving forward.

At PREDIK Data-driven, we allow businesses access to comprehensive market intelligence reports which help them gain powerful insights regarding their competition.  

We employ competitive market analysis tools to conduct insightful and detailed research for our clients. Many clients have gained incredible benefits from our market reports and have witnessed great revenue increases. 

In some circumstances, cannibalization allows you to pursue new market segments and bring out new products. This can help you attract a new audience. In those instances, you can expect there to be some loss of sales due to cannibalization.  

Cannibalization as a Competitive Strategy

Cannibalization, in some instances, can be a great way to compete with competitors. You may bring out a product that directly competes with them. In simple words, it allows you to steal your sales before your competitors can get their hands on them. Regardless of the benefits, there are certainly some instances where cannibalization can be a problem.  

The analysis of cannibalization compares the potential revenue in profits of an existing product before you introduce a new one.  

When executing this analysis, a business hopes that the profit is greater when introducing a new product. At PREDIK Data-Driven, we can help you carry out cannibalization analysis. This will provide you with the key insights that dictate a successful marketing and expansion strategy.