Uncovering Key Consumer Insights & Product Preferences

Meet the Organic Lip Balm Manufacturer

An organic lip balm manufacturer has built an innovative brand around a natural ingredient that humans have been using for millennia: beeswax. Since launching in 1984, the company has expanded to nearly 200 different personal care products that are sold all over the world.

Although this manufacturer has come a long way from its backyard beginnings, it’s stayed true to its roots. The company’s goal, simply put, is to “make people’s lives better every day — naturally.” It does this by placing a strong emphasis on top quality ingredients, responsible practices, and stellar packaging. Its bee-based products have been particularly popular among the Millennial consumer market. In particular, its trademark lip balm is a stalwart favorite; in 2015, this manufacturer generated 12.1 percent of lip balm/treatment sales in the United States.1


The Challenge

With dozens of successful lip products to its name,  they wanted to expand into lip color. After several years of development, the team was ready to bring the product to market in 2015. This was uncharted territory for them, and to produce and market the line properly, they needed an innovative way to understand how consumers think about and perceive the products they buy. 

They needed a data narrative that would improve visibility into trends and market conditions and identify consumers who would be likely to purchase based on common demographics and buyer behaviors. Ideally, this would also let the team see how they stacked up against the competition and monitor how consumers were responding to comparable products.

"We had been spending 250,000 dollars every six months for consumer analysis surveys. Predicta was fast to implement, gives us real-time consumer feedback and save us over $200,000 every six months"

Predicta in Action

In addition to classic market surveys and focus group interviews, they chose Predicta to help them launch a successful lip color line. Empowered by Predicta’s algorithmic decision-support platform, they could better position its products to their customers, and have a real-time picture of the ever-changing competitive landscape (SWOT) data.

What cinched the deal?

In researching the lip color market, Predicta validated that the color Cocoa was indeed an opportunity. It was a much-missed color that top cosmetics brands, such as L’Oreal Paris, had discontinued globally. This proved to the manufacturer team that Predicta’s automated technology could quickly figure out important points that had otherwise taken months or even years to discover.

The next step was to delve across seasonal lines, taking deeper dives into the categories of what Predicta calls “intrinsic” attributes, such as other colors, hues, moisture, packaging, organic status and much more. Predicta’s algorithmic crawlers and analytics found a spectrum of key signals — classic to subtle, obvious to nuanced — that the team could trust and act upon. In short, Predicta was able to gather not only the same but also vastly augmented information in seconds - being an automated market intelligence module - that took surveys several months and cost hundreds of thousands of dollars to do.

In the past, they, like the vast majority of brand companies, relied on surveys and market research projects — which are inherently more costly, carry biases, and are time-consuming — to identify new and key ways for the company to penetrate a new market. With a few clicks, Predicta found dozens of viable ways to penetrate and carve out space in a new market.

"Predicta provides deeper, richer, and more subtle insights that shed meaningful light on the consumer-product relationship."

The Future

Predicta now monitors the competitive landscape for this lip balm manufacturer, continuously — across colors, all brand and product attributes, over time and going forward. Using Predicta, parent company has saved significant sums of money in exchange for more immediate results. Teams now have access to much deeper, richer, and subtler insights that shed meaningful light on the consumer-product relationship.

Currently, Predicta is helping this lip balm manufacturer track the consumer pulse following its recent launch of the “Basic Blush” lipstick line. Using these insights, the company can make informed improvements to keep the customer satisfied and give it a competitive advantage.

Pricey market research surveys have long provided critical information for the world’s great brands — but now there’s a better way. Predicta can do it for a fraction of the cost, in a fraction of the time. Predicta then takes it one step further by augmenting these findings with much richer detail — from identifying new categories a customer can act upon, to choosing from many attribute lines and competitive analyses at their fingertips. Crucially, Predicta does this in an ongoing and continual manner, not episodically. After all, can a CPG company really afford to wait until the “fall’s brand health survey” to know the SWOT analysis for the brand and its market.

"With Predicta’s real-time picture of consumer setiment data, we can instantly identify, analyze, and quickly develop products our consumers want."

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1) http://www.statista.com/statistics/463377/us-dollar-sales-share-of-leading-lip-balm-treatment-brands/