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Case #6: Foodservice

Assignment: New Distribution Strategy

Situation

• Away from home foodservice is growing and is an attractive way to sample new/young users.
• The QSR industry dominates fountain growth and has the greatest potential for incremental volume.

NECG Insight

• QSR operators are aggressively seeking to differentiate themselves from direct and indirect competition.
• Soft drink margins in restaurants are so relatively high, companies will trade off price for other forms of value.
• Client’s primary competitor is focused mainly on delivery, service and product quality.

Recommended Strategy

• Build value added marketing strategies and programs to complement and build on QSR business strategies.

Results/Outcome

• Converted major food chains based on product superiority strategy.
• Added Client’s product alongside competitor in major convenience store and retail chains.