Challenge
A leading multi-brand e-retailer of designer and luxury fashion brands wanted to understand their brand strength relative to other competing e-retailers. Specifically, they wanted to assess fashion spending by the different personas they had created of affluent buyers which had been determined by an algorithm based on a range of demographics, spending, and answers to attitudinal questions.
Besides measuring its strength on different rungs of the brand funnel from awareness to loyalty, the client also wanted to understand:
- Fashion spends by different segments according to its existing segmentation tools
- Sources of information on brands
- Advertising recall
- Brand imagery according to Aaker’s Brand Personality Scale (48 attributes mapped onto the Big-5 Dimensions)
- Share of wallet of competing brands to identify their closest competitors.
Methodology
Survey methodology
Phronesis Partners assisted the client in re-designing the questionnaire from the first wave of the study to reflect additional measurements per requirement in order to create a consistent brand funnel base and capture the required information which could then be used to calculate the share of the wallet.
- The survey was programmed in Confirmit and fielded by Phronesis in collaboration with its partners in 16 countries across four continents, with a total of 9,200 respondents participating in the research.
- Various hard and soft quotas were applied based on minimum income, annual spend on fashion goods, and demographics (age, gender) in line with the client’s requirements.
- Our programming team then coded the algorithm shared by the client to create buyer personas based on these criteria and accompanying responses, including answers to attitudinal questions
- The results were tabulated to aid in data analysis including giving the client access to a KPI dashboard to track their brands against their competitors, and driver analysis to track reasons for visitation, purchase, etc.
- Results were then segmented by countries, age, menswear/womenswear, annual household income, and spending on fashion goods.
Share of wallet methodology
Share of the wallet was computed across the client’s different brands and those of competitors, to identify where the closest competition lies. Our analytics team calculated this using the following methodology:
- From the survey data, we computed the total spend by all respondents on each e-retailer as a percentage of overall total spend on luxury and designer fashion and accessories – raw share of wallet for each e-retailer for each country
- We took the subset of respondents who had spent on these brands (e-retailers) for each of the four client brands. We then looked at the total spend of the brand’s clientele on luxury and designer fashion and accessories as a proportion of their overall spend in the category. We also looked at which brands were its closest competitors by percentage spend. Similarly, we calculated this for the combined clientele of the client brands (those who had spent on any one of the four client brands during the preceding 12 months)
- The computations were also broken down by menswear and womenswear for each country for all the client brands.
Phronesis also provided end-to-end project management to the client, including weekly strategic calls to review progress, and update them on trends and data analytics.
Outcome
Our methodology helped the client identify far more effectively the most significant threats in terms of overlap between their brands and those of competitors, broken down by segment including menswear, womenswear, and by country. This has resulted in the client being able to identify the areas needing optimization, enabling them to become more competitive within their marketplace.
The tabulated results have also helped the client to improve their data analysis, including access to a KPI dashboard to track client brands with their competitors, and driver analysis to track reasons for visitation, purchase, etc.
Phronesis Partners’ Project Team
- Anujeet Kaur, AVP Client Servicing
- Daniela Vojvoda, Project Manger
- Yusof Ahmed, Head of Methodology & Director – Insights
