Project Experience

Rival's Channel Expansion Plans Guides Client's Future Plans

Client Situation
Our client is a leading producer of food products. One of its competitors, who only sold its products through specialty channels, was acquired by a global consumer goods power house. This acquisition gave our client's competitor the leverage it needed to expand domestically and internationally in grocery and mass market retail outlets, thereby dramatically changing the playing field in the category.

Fuld Approach
By speaking with stock analysts, we confirmed our client's suspicions that, in fact, the competitor would likely expand distribution of its product line globally into more mainstream channels. However, in speaking with key retailers in specialty, grocery and mass channels, we learned that the timing of expansion was not as imminent as originally anticipated. The acquiring company had not yet solidified its plans since all discussions with grocery and mass retailers were put on hold.

Benefits and Implications
Our client learned of its competitor's plans to expand distribution including which channels it would enter. Additionally, it developed a better handle on the window of time it would have to prepare for this expansion so that it could plan better its own course of action, rather than impulsively react to this major industry change.
For more information, contact Michael Sandman at msandman@fuld.com.