WNCC’s Case study

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

Ensure WNCC's continued presence and expansion in the market amidst adversity.

Create a direct access to market by forging a relationship with distributors & contractors.

Target a 20% rise in market share to mitigate the impacts of the competition.

Solutions Used: Reward Chain

  • Customer Incentives: Build an incentive app that can be used by all levels of distribution down to the electricians to create a pull effect.
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.

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.

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