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Evaluating Impact of Loss of DistributionClient Problem: Evaluate Impact of Loss of DistributionA semi-durable products firm had been facing decreased distribution of its key products at one of its largest retailer customers. The retailer had stated plans to decrease space allocation to the category as a whole, possibly with a goal of eliminating the client's category entirely. The client wanted an objective assessment of the consumer and retail marketplace to better understand the viability of their products, as well as an estimate of volume loss if the category was to be discontinued at the retailer. Global Insight Approach: Collaborate to Combine Our Strengths Global Insight acknowledged that the client had immense knowledge of their product category and consumer buying dynamics, not to mention long-term partnerships with retailers in the marketplace. Global Insight and the client decided to combine these insights with our knowledge and forecasts of channel, retailer, and consumer behavior by establishing a "study group" of key client and Global Insight associates. Over an eight-week period, we would meet every two weeks as a group to present findings from our own areas of expertise. For Global Insight, this included a comprehensive survey of category-buying households, channel and retailer profiles and assessments, category forecasts, and demographic forecasts. The client contributed consumer buying (panel) behavior, sales data, and retailer interview findings. Outcome: A Jointly-Developed Go-Forward Plan: Our joint meetings resulted in collaborative learning about marketplace dynamics and the likely future direction of the client's category. Global Insight was able to conflate findings to model scenarios of the impact of a category de-listing from the retailer in question. More importantly, the client became much more knowledgeable about the landscape for their products, the channel opportunities they had overlooked, and the product development direction they would have to undertake to compete more effectively. We effectively turned their problem of de-listing into an opportunity for marketplace assessment that would form the foundation for their future growth strategy with consumers and retailers.  |
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