Situation
The client was a recently acquired PE portfolio company manufacturing frozen products. Client’s main brand had experienced strong historical growth driven by both distribution and consumer momentum – however, it had done so in limited markets primarily ethnic markets. Looking forward, management team was looking to prioritize distribution growth and wanted to understand the size of the prize
Approach
- Built a size of prize model at the market and retailer level to assess growth potential
- Assessed potential growth opportunities in three areas – greater penetration of existing core retailers, increasing presence at retailers with moderate penetration and white space retailers
- Also, looked at opportunities in markets with high, medium and low ethnic presence
- Outlined key elements and “watchouts” of the growth strategy moving forward
Results
- Focus on high ethnic markets with limited strategic entry into moderate ethnic markets
- Avoid markets with a high degree of presence of the biggest competitor
- Consider launching a new product in select markets to shore up greater market share
- Do not invest in items that are declining; focus on innovation and existing high growth items