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Case #4: Global Food Company
Assignment: Brand Rejuvenation/New Product Development
Situation
- Extensive and ongoing research revealed significant dissatisfaction with the entire category by all major participants . . . Consumer (poor product), Trade (declining sales), and our Client (low profitability).
- For the past decade, the category had been eroding in both sales and profits with substantial and consistent declines in household penetration and per capita consumption . . . and a 16% decline in price.
NECG Insight
- Only a significant change, particularly in the product, could arrest and reverse the Category and the Client franchise.
- The root of the problem was the product itself which was under a DoA definition which, years before, reduce the oil in order to reduce the caloric content.
- The consumer was just bored with this mundane, cheap commodity.
Recommended Strategy
- We set up and worked closely with a cross-functional team of our Client’s executives to turn the category upside down with true innovation . . . and attacking all the marketing variables simultaneously.
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