Results

A multi-billion dollar U.S. confectionary manufacturer was experiencing slow growth in the chocolate category while a key competitor’s sales were increasing.

IRI identified a holiday product development opportunity for the client, leading to ~20% sales growth in two years.


The Challenge
The manufacturer had focused on its premium products for many years, but did not realize that category growth was being driven by low-priced chocolates during one particular season.
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
  • Pack size analysis

 

Our analysis provided two main insights: 
Easter-shaped chocolates under $1 were driving significant category growth.
This segment’s overall sales made up 10% of the overall category, but the client was only capitalizing on 2%.

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