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A global beverage company

Gather detailed consumption and income data for specific age groups across countries

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CHALLENGE

Gather detailed consumption and income data for specific age groups across countries.

GOING GLOBAL FOR

  • Customer Needs & Demand
  • Strategic Market Assessment

A well-known global beverage company needed detailed consumption and income data for specific age groups in 60 countries.

The company came to The Economist Intelligence Unit in 2011 requesting consistent income data across a number of countries (e.g. number of inhabitants per country having an income in excess of US$10,000, purchase power adjusted). It initially purchased our off-the-shelf Market Indicators and Forecasts (MIF) product for understanding the potential size of the global market for its energy drink.

The company needed detailed consumption and income data for specific age groups in 60 countries. It was passed to The Economist Intelligence Unit’s Custom Research team, which provides bespoke data and analysis for companies. Specifically, the beverage company asked our Custom Research team to determine:

· Income levels broken down by age group (15-19-year olds, 20-29-year olds, 30-39-year olds)
· An appropriate consumer expenditure figure or “threshold” for consumers who are most likely to purchase its beverage
· Where the company’s flagship beverage over- and under-performs according to market potential

HOW WE DID IT

Two Custom Research analysts teamed up with The Economist Intelligence Unit’s economics team to:

· Adjust The Economist Intelligence Unit’s income numbers to reflect the company’s key demographic in the 60 countries
· Apply the Lorenz curve income distribution method to identify the correct threshold that would represent the consumers within the target · group who would potentially buy the beverage
· Use the S-curve approach to forecast a drink category that is relevant for understanding the market potential for soft drinks

The team used the results to build a mapping tool that the beverage company’s marketing and finance teams could understand easily and use to determine its market potential in the 60 countries.

In addition, the team created a set of 60 country “fact sheets” with more qualitative analysis around each country’s demographics

RESULTS

This beverage company now prefers to use The Economist Intelligence Unit as its outsourced market research partner. It does not have an internal research team, and it does not like to work with large consultancies.

We have a Multi-Service Agreement with the company, whereby it can call on us at any time to answer questions about political and financial regulations in key markets in which it operates or is looking to operate.

The beverage company has expressed a need for more granular city-level data and analysis. As a result, it is looking at our Africa and Russia city capabilities, as well as our India regional capabilities, which will provide FMCG companies like this one with the intelligence they need to make smart investment decisions.