Our Success

Program Development And Market Launch

The Client:: A leading manufacturer of pumps and water gardening products.
The Challenge:: Reposition a category at mass retail and grow the core pump business.
Our Approach:: We reviewed the entire category and identified the opportunity to grow the business with consumers and retailers by creating an optimal product assortment with support at point of sale to sell the entire water gardening project.
The Solution:: The client's sku mix was reduced from 256 products down to 98, with 46 of those being brand new products. New packaging branded and created an identity for the product line. New merchandising was developed that allowed DIY'ers to customize a water garden at point of sale. A distribution strategy maximized their share and margin opportunities.
The Results:: The program paid for itself with the opening order and the brand's average individual transaction quadrupled. A sub-brand with a separate identity was developed for the dealer marketplace to allow independent dealers to compete with mass retailers. The combination of these two programs has doubled the client's business in two years.

Redefining A Category

The Client:: A leading manufacturer of power tools
The Challenge:: The client had two weeks to prepare for a major line review with their largest retail customer at a time when sales were down and they were in jeopardy of losing space for their automotive power tools.
Our Approach:: We examined how the products were sold in the store and found they were spread among several departments, while 30 continuous feet in the store was being used to sell low margin vehicle cleaning and detailing products.
The Solution:: We created a new line logic and complete planogram merchandising system that featured the client's power tools to complement the other auto detailing products and presented it to the retailer along with our client.
The Results:: Not only was this company's business saved with their largest retail customer, but they were awarded a four foot exclusive program. The retailer was able to increase the average sale and improve margin overall in the newly created "auto detailing" category.

Expanding A Product Offering And Improving Working Capital

The Client:: The world's largest producer of methyl methacrylate (MMA) and specialty methacrylates which are key materials used in products such as baths, signs, lighting, vehicle components, appliances and coatings.
The Challenge:: The acrylic replacement panel product offering at retail was characterized by inexpensive styrene products, sold at low prices, which damaged and discolored easily. This resulted in low margins and a large percentage of damaged goods for both manufacturers and retailers.
Our Approach:: We reviewed the entire category and conducted research on how people shop and what they would spend for certain features. We found that people would pay up to five times as much for product that would not crack or turn yellow. We also found the opportunity to position ceiling lighting panels as fashion items for the home rather than as a commodity item.
The Solution:: By using acrylic technology, the manufacturer was able to produce a new panel with advanced features and positioned it as a premium product along with the standard styrene panels at an opening price point. A display was created that positioned the lighting panels as home fashion items and the entire product section was moved from ceiling tile in the back of the store to a prominent place in the lighting department.
The Results:: The client's largest retail customer realized over $4mm in incremental gross margin dollars in the first year of the program. Furthermore the client reduced working capital by $4.5 million by combining production to maximize manufacturing efficiencies.

Product Assortment Optimization

The Client:: A leading manufacturer of decorative hardware products.
The Challenge:: Because these products are sold to a specific upper-income demographic, there were performance issues within their largest customer’s stores resulting in declining comp-store sales and a decrease in GMROI. Solutions needed to be developed quickly for an upcoming line review with this major retailer.
Our Approach:: In order to optimize product, price and product mix at the store level, we collected information on consumer perceptions of brand value, price elasticity and the product feature/value equation. Using demographic data to identify optimal locations and store size for this brand’s product offering, we were able to identify gaps in what was being sold in each location versus the type of person likely to buy it.
The Solution:: By interpreting the consumer information and overlaying it with geographical demographics, we were able to develop an optimal assortment size and product mix bystore. This was achieved by understanding the characteristics of the target consumer needed to purchase particular products, versus the characteristics of consumers shopping in a given store.
The Results:: The manufacturer was successful in the line review and was able to get the retailer to implement the plan immediately while maintaining their current pricing structure. An $8 million sales increase and an average gross margin increase of 12.5% were achieved in the first year.

Product Repositioning And Distribution Strategy

The Client:: A global manufacturer of specialty coatings.
The Challenge:: This client's market share of premium pool paints was being eroded by lesser quality, lower priced products. The goal was to protect their market share yet still maintain their current pricing structure.
Our Approach:: We conducted a comprehensive competitive and distribution review in both the specialty paints and mass retail markets to create an integrated product/distribution strategy.
The Solution:: A three-tier product strategy was developed which included the original premium paints, a new contractor line, and a new DIY line to compete with low-priced competitive products. Premium and contractor lines would sell exclusively in paint specialty stores and the DIY brand would be offered through mass retail as well. All lines were supported with new packaging, which identified a three-step application system.
The Results:: The client was able to maintain existing distribution levels and pricing strategy while directly addressing the new threat from low quality, low priced products. They also increased their presence in the mass retail market. The three-tier product strategy pushed price points up and their customers realized higher margins. Furthermore, the new three-step application system reduced the number of product performance complaints.

Mitigating Risk

The Client:: A Global Manufacturer of Consumer Products.
Situation:: The client had developed a new technology and would have to spend 60mm in building a manufacturing plant to bring to market. They wanted to know the market potential prior making such a large scale investment to mitigate their risk.
Solution:: We developed a quantitative research methodology to measure usage and adoption rates. We then built predictive models to project potential sales volume in specific markets by retailer.
The Results:: Provided the client with quantitative data supporting the decision to build a plant and bring the product to market. The client is currently developing the infrastructure and retail program to bring to market.

Creating A New Product Catgeory And Improving Profitability

The Client:: A Manufacturer of Construction Adhesives and Sealants
Situation:: The client had a single SKU with high brand awareness but commodity pricing. They were getting tremendous pressure from their customers to improve the gross margin on this item.
Solution:: Analyzed the client’s capabilities to understand their technology and conducted end user research to understand product uses. As a result of this understanding, we developed a complete line of technologically superior products based on the needs of the target customer that were project specific and supported higher retail price points.
Results:: Sales were shifted away from the single commodity product to new higher price point products that performed better in certain applications than the original product. Gross margins and GMROI were significantly improved by selling a complete product line verses a single item.