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Home > Our Clients > Success Story
"Total incremental [revenue] equals $4MM+...it certainly pays for Spectra."
– Key Retailer Team Leader,
Mid-Sized Consumer Products Manufacturer
Situation
Marketers at a mid-sized consumer products manufacturer were challenged when the 4-pack format of their branded product was de-listed by a key retailer, leaving only a 2-pack in distribution. The client felt the 4-pack catered to a different consumer which differed from the 2-pack consumer; however, they needed insights that back their hypothesis in order to justify keeping both packs in distribution.
Task
We were tasked with helping the client build a case to regain the 4 pack distribution using Opportunity Finder, a Point-Of-Sale (POS) consumer profiling solution.
Action
Using Opportunity Finder and POS data supplied by the vendor, we worked with the client to apply the retail C.O.D.E. process to confirm that each pack served a different core retail shopper. The profiles showed that families typically buy the 4 pack and couples typically buy the 2 pack. Thus, both packages are needed on the shelf in order to capitalize on the differing buying habits of these segments. In effect, the retailer was losing potential category purchase occasions when the larger pack was de-listed.
Result
Our recommendations were a resounding success. By showing the retailer these differences, the client not only had their original agreement reinstated, but they also obtained new distribution. The retailer gained a total shelf offering that catered to a broader shopper and is in a better position to capture more category purchases. In total, the client captured over $4.2 million in incremental revenue as a result of our recommendations.
The Key Retailer Team Leader at the client exclaimed: "..Getting the 4pk reinstated was worth $1.2MM (retail). However, through this exercise we were able to point out additional opportunities and got [several] new stores…or another $400k+ (at retail). We were also able to leverage getting the new [flavor] in at the same time in 2,000 stores, which is worth $2,664,000 (retail). Total incremental equals $4MM+......it certainly pays for Spectra."
> Click here to download a full case study from our Resources section.
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