Switzerland’s Regional Differences Provide Opportunities for Personalization

Switzerland’s Regional Differences Provide Opportunities for Personalization

Around the world, today’s consumers are increasingly disloyal—they’re cheating on their favorite brands and searching out what’s “new.” But brands and retailers that can provide a more personalized experience have the opportunity to win over loyal consumers. Within markets, opportunities for personalization can be found at the regional level.

When thinking about regional differences in how products are bought or sold, beer is the product that most likely comes to mind first in Switzerland. With a competitive landscape composed of many small, but regionally strong breweries, this perception is certainly justified. Our research clearly shows that smaller, regional brands can be extremely strong in their focus regions—which can have a significant impact on larger manufacturers.

Similar examples on strong regional differences can be found in categories like mineral water, dairy products, fruit juices or pasta. But it’s also worth taking a look behind the scenes at product groups where you might not expect such a regional difference at first glance.

Fruit gums, for example, are one of those categories where you might expect little regional difference. The category is characterized by two dominant international market leaders with national listings, and niche players are few and far between. So are there regional differences?

To examine this question further, we divided Switzerland into geographical clusters and analyzed the sales data per brand per region. The performance differences are hard to deny.

Fruit Gums in Switzerland

On a national average, the fruit gum manufacturer’s market share is around 29%. However, our regionality model shows fluctuation between individual regions ranging from as low as 4% to as high as 42%.

For this particular manufacturer, this means that, despite their national listings, there are clearly still areas with overlooked potential. But looking at this scenario from a different angle, this particular manufacturer’s competition has quite a few opportunities to grow loyalty and gain market share if they rethink their own regional listings and/or marketing strategies.

The research is clear: even in categories where you might not expect it, there are opportunities to grow market share and loyalty with more personalized offerings using regional analysis. In addition to market shares by manufacturer or brand, individual varieties, pack sizes, geographical areas (i.e., urban vs rural, domestic vs border) or individual stores (including different assortments or availability of displays) can be analyzed to determine regional tastes and preferences.

For more information on regional analysis and store clustering, please contact us.