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A Changing Distribution Landscape
The Problem: Evaluate the Impact of a Loss of Distribution
A semi-durable products firm had been facing decreased distribution of its key products at one of its largest retailer customers. The retailer was planning to decrease space allocation to the category as a whole, possibly even eliminating the category entirely. The client wanted an objective assessment of the consumer and retail marketplace to better understand the viability of their products, as well as an estimate of volume loss if the retailer were to discontinue the category.
Our Approach: Collaborate to Combine Our Strengths
Global Insight acknowledged the client's immense knowledge of their product category and consumer buying dynamics, not to mention long-term partnerships with retailers in the marketplace. Global Insight and the client decided to combine these insights with our knowledge and forecasts of channel, retailer, and consumer behavior by establishing a "study group" of key client and Global Insight associates. We met every two weeks over an eight-week period to present findings from our own areas of expertise. For Global Insight, this included a comprehensive survey of category-buying households, channel and retailer profiles and assessments, and category and demographic forecasts. The client contributed consumer buying (panel) behavior, sales data, and retailer interview findings.
The Answer: A Jointly Developed Go-Forward Plan
Our joint meetings resulted in collaborative learning about marketplace dynamics and the likely future of the client's category. Global Insight was able to conflate findings to model scenarios of the impact of a category de-listing. More importantly, the client learned more about the landscape for their products, the overlooked channel opportunities, and the product development direction they would have to undertake to compete more effectively. We effectively turned their problem of de-listing into an opportunity for marketplace assessment that would form the foundation for their future growth strategy with consumers and retailers.
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