PE Consulting

Situation

The client was a mid-tier confectionary manufacturer who wanted to know the impact Covid-19 would have on their core businesses and project what it meant for 2021. They also wanted to see the impact on each of their smaller businesses and develop a game plan to compete effectively against the larger players.

Approach

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  • Built a detailed forecasting model that looked back at history over three years (before and during Covid)
  • Modeled the impact of macro, mobility, category and company related variables on sales
  • Validated the results with a consumer survey to ensure that the results were aligned with consumer behavior
  • Forecasted sakes for remainder of 2020 and 2021 under different Covid and economic recovery scenarios
  • Provided implications for marketing strategies based upon these results

Results

  • Results indicated a fall-off in volume in 2021 after a significant increase in 2020
  • There was a need for a robust e-Commerce strategy given the adoption within the category and the emphasis on this by key competitors
  • A focus on new buyers that have entered the category over the past year is key to growth
  • The company needed to focus on a robust marketing plan to strengthen its brands and capture consumers