Shopper Digest: How to Steal from Your Competitor

The country’s inflation is forecast to remain above 2% this year, while Malaysian households are expected to face greater inflationary pressure due to the government’s anticipated removal of the fuel subsidy and a mid-2025 review of electricity tariffs. With this in mind, 2025 is set to be an intriguing year, as shoppers remain vigilant and continuously reassess their purchasing needs. Brand owners must ensure their brands remain relevant, particularly those focused on recruitment to drive category growth.

Category C experienced strong growth in 2024. While higher prices have played a significant role, the primary driver of this spending growth is penetration, with the number of shoppers in this category increasing by double digits. A common question we have encountered is: Has my brand benefited from this penetration growth? What about my competitors? This case study will highlight the opportunities for Brand A to capture shoppers from its direct competition.
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Brand A ended the year with stronger volume growth than Category C. This positive momentum bodes well for Brand A, as it has successfully increased its penetration in line with the category’s overall growth. However, while Brand A expanded its shopper base by almost 2 percentage points, it faces a challenge—Brand B has grown even faster, doubling its penetration growth rate compared to Brand A. As a result, Brand A sought to identify growth opportunities to counter this competitive threat from Brand B.

The next step was to conduct a deep dive into demographics to uncover potential growth opportunities for Brand A. We analysed and compared both brands’ performances across key demographics, including region, ethnicity, life stage, and household income. The findings reveal that Brand A is performing well and, in fact, is outpacing Brand B across most demographics. This analysis highlights that Brand A’s key growth opportunities lie in the North and Central regions, Chinese households, nesting families, and low to mid-income groups.

We are well aware that we cannot adopt a one size fits all approach when it comes to shopper marketing. We have helped Brand A to identify its pockets of opportunities so Brand A can execute a more targeted approach in order to recruit more shoppers from Brand B. Through other special analyses, Brand A has discovered the specific retailers, the right pack size, the effective promotion mechanics and the right flavours in their recruitment drive.

Penetration refers to the percentage of the population purchasing a brand over a specific period. It is a crucial metric that key players use to benchmark against competitors and assess opportunities for expansion.

At Worldpanel, we help our clients grow their brands by identifying opportunities to attract more buyers through targeted shopper demographics within their categories. This approach enables brands to implement best practices and optimise their marketing budgets to drive sustainable growth.

Source: P13 2024 database, Worldpanel Malaysia