A leading UK grocery business was not satisfied with the performance of an innovative new product which they had launched into a new category for the business. We were asked to review the product proposition and launch and develop recommendations as to whether it was worthwhile continuing with the project, and if so, what changes or further steps needed to be taken.
The project confirmed that the new category was an attractive source of additional growth through looking at category growth rates (value and volume), cost recovery, profitability benchmarking and profiling the competitor set. We then developed key ‘rules of engagement’ for the new category, eg how to operate in each retail channel, how the market was segmented, which product formats suited each eating occasion and what were the optimum promotional mechanics in each market segment.
The revenue and profit potential for the product was validated against market norms for retail pricing, promotional intensity, retail and manufacturer margins and distribution costs for both the existing and expanded manufacturing capacity.
We finally prepared a plan of the key actions to enable the business to refocus the positioning of the product to drive consumer awareness and performance and fulfil its potential.