Product Innovation

A multi-billion dollar U.S. confectionary manufacturer experienced slow growth in the chocolate category, while a key competitor saw positive sales growth.

 

IRI identified a holiday product development opportunity for a client, leading to approximately 20 percent sales growth in two years.

THE CHALLENGE

The client focused its efforts on continuing to support premium products for many years, but did not realize that category growth was driven by low-priced chocolates during a key season for the category.


IRI leveraged its point-of-sale database to conduct an in-depth analysis, uncovering drivers of growth in the category and potential areas of opportunity for the client. The analysis examined:
  • Trends in different pricing tiers
  • Impact of seasonal events on sales
  • Effect of pack size on purchase

 

Our analysis provided two main insights:  
Easter-shaped chocolates under $1 were driving significant category growth.
This segment’s total sales made up 10 percent of the overall category; however, the segment only comprised two percent of the client’s portfolio total sales.

THE RESULT

After implementing this new strategy and launching new offerings in the segment, the client experienced a sales lift of nearly 20 percent over two years: 9 percent in year one and 10 percent in year two. The success of this undertaking prompted the client to maximize other new opportunities by expanding into different low cost segments.

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FACTS ABOUT US

95% of CPG, retail, and health and beauty companies in the Fortune 100 work with us.

 

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