Project Experience

Channel Expansion Rumor Confirmation Helps Guide Future Marketing Efforts

Client Situation
Retailers are advised well in advance of a new product launch to allow adequate time to prepare for the arrival of the new product, which frequently requires reevaluation of the category, shelf resets and, in some instances, discontinuation of under-performing products to make room for new ones. Our client is a leading producer of household products. Rumors were rampant that a high-end competitor, who had sold its household products through specialty channels, was planning to expand into more mainstream grocery channels, which has been our client's domain and stronghold.

Fuld Approach
Our goal was to determine which channel strategies the competitor was likely to pursue and the implications for our client. By following up on pieces of evidence through conversations with retailers, we determined that the competitor, in fact, was making inroads into more mainstream grocery channels, indicating a definitive change in strategic direction.

Benefits and Implications
We identified the channels, the specific accounts, the product line, the marketing support and the likely timing of expansion. This understanding helped our client plan its product, marketing and shelf protection strategy to defend its position in the marketplace.
For more information on new product rumors in consumer products, contact Michael Sandman at msandman@fuld.com.