- Company Profile:
- Turnover: AUD$1bn
- Categories: Soluble Coffee and Mixers
- Region: APAC/Australia
- Market Position: Brands are in the Top 1-2 in their respective categories
- FMCG Analytics Solution: 2-year Pack Price Strategy & Financial Projections
Business Situation:
- Coffee consumption had been flat over a 3 year period
- Core mainstream brands been declining with competitor’s main brand growing
- Competitors’s growth being driven by a more defined pack architecture and an aggressive promotion program focused on trading up
- This meant the Client needed a complete review of:
- Their pricing, promotional programs and opportunities to create more value through innovation
- While recognising the Clients greatest competitor is often itself, which is driving trading down
What We Delivered:
- Delivered a Pack, Price Architecture (PPA) strategy and set of 2-year financial forecasts focused on growing in 2 largest Customers
- Final recommendations included:
- Top and bottom line growth plans for 2 major customers whilst increasing clients profitability
- Broad set of recommendations addressing client, customer and category needs including everyday price competitiveness through to expandable incremental growth opportunities
- Promotion optimisation plan developed to ensure reduced cannibalisation of own brands and incremental growth for category
- 6.5x ROI identified in first 12 months
- Identified a significant lift in contribution margin in the first 12 months for both Client, and for the retailer
