"CMI Guide" Introduction:
Consumer market insight (CMI) refers to the use of in-depth understanding of consumer needs and expectations, combined with market trend data, to guide business decisions such as product development, market positioning, marketing strategies, and customer experience improvement.
This column aims to reproduce the core analysis process of CMI by using Moojing series products, and help customers get started with efficient market trends and consumer insight analysis by focusing on business scenarios and dismantling analysis steps, so as to help brand revenue growth.
Topics of this issue:
Is the niche worth entering?
Product Functions:
Moojing analysis + custom analysis, Moojing social listening crowd portrait
As we all know, the first step of STP, the core theory of market strategy, is segmenting.
In the competition in the stock era, the market dividend is almost divided by all kinds of brands, and whoever can gain insight into the unmet needs in the market segment and quickly layout will be able to seize the opportunity.
Only when the scenes, groups, and categories are sufficiently subdivided can we form a brand advantage through differentiated products and dig gold from the blue ocean.
So, how to determine which market segments are worth entering the track and avoid falling into ineffective involution competition?
This "CMI Strategy" will take the past analysis practice as an example, combined with the product functions and data of Moojing Analysis+ and Moojing Social Listening, to bring you a practical analysis strategy.
Whether you are a product person or a brand person, this strategy will make you benefit a lot when conducting market segment analysis.
01How to position the market segment before opening the product?
Choice is more important than effort, and it is much easier to find differentiation in the market segment than to roll up product strength in the Red Sea market. By analyzing the market segments, we can find unmet market demand, which can help brands open products and fill market gaps.
Studying market trends is an indispensable part of the product development work, which determines a series of actions such as follow-up product positioning, design, and research and development. Before judging whether to lay out a certain market segment, how should a brand discover and position a market segment? There are generally 3 common lines of thought.
- Starting from the target users, combined with the segmentation scenarios, the preferences and pain points of different groups of people are studied, and they are summarized.
- Benchmark against competitors and look for potential market segments by researching the strategic direction of competitors.
- Analogy with similar industries, or combine seemingly different industries and technologies to find opportunities.
So, how to further judge whether the market segment is worth the layout? It can usually be broken down into the following two steps:
- First of all, observe the scale and change trend of the market segment to determine whether the market is an incremental market.
- Then, we will deeply analyze the consumer portraits in the market to clarify the needs and pain points of the target users.
After judging the incremental space of the market and the study of consumer demand, we can judge whether this market is a red ocean where competition has entered a white-hot stage, or a blue ocean market that is worth further layout.
02 Practical case: What are the market segment opportunities for baby and child personal care brands that are worth entering
In this CMI strategy, we will show the real cases of serving baby and child personal care brands in the past.
In 2022, a leading baby and child personal care brand approached the Mojing team, hoping to understand the market potential of the baby and children's hair care category and what opportunities are worth entering in the subdivided categories. We used the Mojing CMI series products to complete the analysis of the baby hair care market and gain insight into the potential business opportunities in the sub-category.
The research and development of baby and child personal care products can refer to the development trend of overall (especially adult) personal care products. We have observed that in recent years, there is a certain growth potential in the sub-category of the adult hair care track.
So, let's start by focusing on the size and trends of the market segment.
In order to quickly locate the data trend of the sub-categories, we can define rules through the "Custom Analysis" function of Mojing Analysis+.
Mojing analysis + data shows that in the overall shampoo market from 2020 to 2021, the growth rate of hair oil is higher than that of conditioner, and the scale of the hair oil category itself continues to expand, which is a segment market with growth potential.
The unit price of hair oil is higher, and the number of products and stores in the market is small, and there is no fierce competition trend.
Let's study the crowd portrait of consumers, through the Moojing social listening system, we can quickly locate the basic portrait of potential customers.
Through comparison, it is easy to see that the users of the hair oil category and the buyers of the baby hair oil category have highly similar user portraits.
In addition, the two types of users also showed a high similarity in the distribution of interests, which can be inferred that there is a high degree of overlap between the users of the hair oil category and the potential buyers of the baby hair oil category.
Using the CMI product matrix for further research, combined with data analysis of the current situation of the market segment, competitive products, and consumer demand, we believe that baby and children's hair oil is a sub-category worthy of layout as soon as possible.
Through the data verification in 2023, it is not difficult to find that hair oil is the only subcategory in the baby shampoo track that maintains rapid growth, and it has not yet formed a fierce competition trend.
At the same time, judging from the data of the first quarter of 2024, the segment of baby hair oil still maintains a strong growth trend, with a year-on-year growth rate of more than 100%, and the market scale is further expanding.
Assuming that our products can be launched in 2023 to early 2024, then the new products will just catch up with the rapid growth dividend of this segment.
The above content is only a situation in the scenario of product development and research and analysis, and we will show more analysis steps and analysis strategies in real business scenarios in the follow-up content of "CMI Strategy".
If you need to gain insight into the market, complete product development or product iteration, and guide business development through market research, competitive product analysis, consumer analysis, etc., please contact us to apply for a trial of Moojing CMI products.
Based on the category structure of industry cognition, the Mojing CMI system opens up the market sales data, filing data, and consumer review data of products on Tmall, JD.com, and Douyin platforms, and in other more universal scenarios, such as:
1. Diagnostic performance of related ingredients/materials/functions in specific market sizes and trends;
2. Check the market competition landscape of related ingredients/materials/functions, etc.;
3. Focus on the concept of high growth, take stock of advantageous brands/categories/products/ingredients, etc.;
4. Capture market pain points/needs/opportunities in consumer feedback.
In fact, all of the above scenarios can be solved by the Magic Mirror CMI system. Moojing Insight also hopes to discuss and create more application scenarios with brands in the subsequent use process, help brands conduct multi-dimensional data cross-analysis, help multi-faceted insight into industry trends, explore category opportunities, and use big data to empower product innovation and market strategy.