Case studies
WNCC's Market Share Surges with Reward Chain
Summary
In 2018, Western National Cement Company (WNCC) faced the challenge of a new factory, six times its size, opening nearby. This development along with standing in a stagnant and price-sensitive market was a challenge that WNCC turned into an opportunity.
Challenges
- Increased Competition: The arrival of a significantly larger competitor endangered WNCC's operational existence.
- Stagnant Market: The market's lack of growth compounded the difficulties presented by the new competition.
- Price Sensitivity: The market's focus on price made it harder for WNCC to compete effectively.
Objectives
Increase market share in the retail sector within three years.
Establish trust and credibility among consumers and stakeholders.
Expand the company's reach through strategic partnerships and collaborations.
Solutions Used: Guard and Reward Chain
- QR Code Authentication App: Build an authentication app that helps retailers and electricians to verify whether the cables are real or fake through QR Code.
- Customer Incentives: Build an incentive app that can be used by all levels of distribution down to the electricians to create a pull effect.
Impact
Expanded Distribution Network
Successfully linked the factory to 1,200 distributors within a year, thanks to a marketing incentive scheme.
Direct Contractor Engagement:
Within two years, WNCC established connections with 12,000 small contractors in its primary market area.
Market Share Growth
Achieved a 20% increase in market share, distinguishing WNCC among 19 competitors negatively affected by the new factory.
Price Positioning Improvement
Elevated price positioning from a -15% to a +40% differential, yielding an annual bottom-line increase of 90 million EGP.