Project Experience

Positioning of Competitor's New Product Helps Determine Appropriate Marketing Strategy

Client Situation
Our client is a leader in the super-premium segment of the market in which it competes. Although the market leader did not compete in this segment, there were rumors that it had plans to launch a product in this segment as part of its long-term growth strategy.

Fuld Approach
In conversations with stock analysts, we confirmed the rumors and gained insight into the timing of the new product launch. To determine the extent of this threat to our client, we needed to understand how this new product line would be positioned in the marketplace. Conversations with ingredient suppliers enabled us to identify the product technologies the competitor's new product would use and to determine how this product line would be positioned to compete against all key competitors in the category.

Benefits and Implications
This insight into the product technologies the competitor would use and how the competitor would position the product line against other industry players. It helped our client to develop an aggressive marketing strategy to protect its brand franchise as well as a shelf space protection strategy to present to the trade in advance of the competitor's new entry. For more information, contact Michael Sandman at msandman@fuld.com.