ITALY:
Introduction of a new product range to compensate for the currently declining range
Starting point
The company from the confectionery industry has been active with salty snacks in Italy for many years. It is the market leader in this market segment. Due to changing consumer habits and the simultaneous entry of cheaper competitors, sales have been declining for several years.
APPROACH
Analysis of the market for salty snacks and comparison with the product portfolio of the manufacturer. It turned out that a product from the manufacturer has market potential in Italy. The children's product fits perfectly into a growing market. Further analyzes show that adjustments in the packaging variants, especially small sizes and multipacks, are important for the market.
IMPLEMENTATION
Necessary adaptation of the packaging including the development of multipack variants. Development of a marketing and sales strategy together with the Italian distributor, including setting milestones. Thereafter, regular monitoring of the goals using an OGSM concept.
RESULT
Development of a profitable new product segment in Italy. Within 4 years, a distribution of more than 50% in modern retail at all relevant retailers except discount. Turnover and contribution margin also increase by more than 15% and 20% respectively. By relocating production to one of the manufacturer's plants in Hungary, an additional reduction in logistics costs was achieved.
