Challenges and Actions

Branded manufacturer of frozen desserts was losing market share due to the widening price gaps between branded desserts and private label products.

After analyzing the retailer’s price position and shopper price sensitivities, we developed optimal price segments to reduce the price gaps between private label and our client’s brands.

Results

Reversed share decline and increased our client’s sales by 16%, while eliminating margin subsides. Sales for the total category, including private label, increased 3.5%, and profits increased by 5.7%.