Situation
A multinational Fortune 500 consumer packaged goods company, has one of the leading North America brands in the Sauce category. The client had recently learned that a major competing brand was utilizing a private label manufacturer to manufacture its tomato-based sauces, while simultaneously gaining market share in key regions of the US. The client needed to understand the private label company’s corporate strategy and structure, sales and marketing activities, and manufacturing and distribution capabilities. In addition, the client sought to understand the competitor’s sales channel strategy.
Methodology
Maia Strategy Group conducted in-depth research with competitors’ employees in multiple functional areas, including manufacturing, warehousing, strategy, and accounting. To better understand its winning strategies with retailers, Maia Strategy interviewed the competitors’ retail customers (from Grocery, C-Store, and Big Box chains), in addition to third-party sales brokers.
Analysis
Maia’s research found that the private label company was utilizing a low-risk, low-investment model to grow the brand, with reliance on third-party sales and marketing companies, and heavy discounting to win shelf space. The private label company had recently invested in its manufacturing capabilities, which gave the brand potential to move into other food categories.
Impact
Maia Strategy made a series of recommendations to help its client earn back market share in key geographic areas. The client continued monitoring the competitor for “sign posts” of potential movement into other categories.