A global food company was facing increased branded and private label price competition and profit pressures in a core category that was becoming increasingly commoditized. The business was seeking to build a premium offering, but was struggling to successfully transition its business without losing excessive volume and tonnage share, which would impair capacity utilization and further erode profit margins. A restage of the premium range was planned, and the company engaged SPG to help it assess the strategic plan and the potential competitive responses to its actions.
We significantly increased the team’s understanding of its key competitors. The team developed a revised strategic plan, including a refined pricing and trade strategy. In addition, full cross-functional alignment, which had been lacking, was built through the process.