Case Studies: Competitive Brands

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Integrating competitor brands profitably

Due diligence processing - how to maintain competing brands to grow market share

Potential business acquisition

This highly specialised service provides a detailed audit & analysis on the customer database of a potential business acquisition. Covering all aspects of transactional behaviour and data quality, we can compare multiple databases to review customer overlap and purchasing preferences across brands and companies. This assists in developing a future integration strategy, for example;

  • Consolidation
  • Diversification
  • Specialisation
  • Competing Brands

Crucially this also allows you to "fix" the true value of the customer base you are proposing to purchase using robust statistical processes to assess customer value.

One such company Qbase has conducted this work for is Key Industrial Equipment. KEY has been the UK market leader for industrial and commercial supplies for over 30 years. KEY is part of the Manutan International Group consisting of 21 international businesses, all operating in distance selling industrial and office equipment to businesses and local authorities across Europe.

The Brief

Qbase were requested to provide consultancy on the integration of a corporate acquisition, (Euroquipment) within Key Industrial. At first glance both Key Industrial and Euroequipment appeared to be very similar companies with overlapping customer bases which would bring into question maintaining both brands with their associated marketing costs.

The Solution

Following meetings with the board of both organisations, Qbase undertook a detailed analysis of both customer bases, product ranges, mailing campaigns and customer purchasing behaviour. This enabled us to evaluate the impact of cannibalisation of sales from one brand to another, customer overlap, share of wallet and product specialisation between the two companies.

The analysis produced some interesting results:

  • shared customers tended to purchase from Key. When Key mailed the main catalogue the negative impact on Euro-equipment revenue was significant.
  • product areas were very similar for both companies, although Key carried significantly wider product ranges within the main areas.
  • a large number of customers purchased from both companies.
  • share-of-wallet analysis suggested that customers preferred to purchase general product ranges from Key.

Euro-equipment supplied certain niche products which were not significantly impacted by Key.