Strategic Expansion
Orchestrating Exponential Growth for On The Go Snacks
Overview: Before the strategic intervention, OTG Snacks had achieved moderate success with a small distribution model, limited listings, and an extensive yet unconsolidated portfolio. Facing challenges in reaching major retailers, we implemented a comprehensive strategy to revamp the brand, streamline the product offerings, and achieve significant growth.
This case study illustrates the transformative impact of strategic interventions, emphasizing consumer preferences, optimizing the product portfolio, and securing strategic retail partnerships to achieve substantial growth for OTG Snacks.
Strategies Implemented:
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Packaging and Portfolio Revamp:
Completely overhauled packaging for legal compliance and enhanced shelf visibility.
Reviewed and consolidated the portfolio, focusing on unique and signature products.
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National Listing and Trade Marketing:
Launched the revamped portfolio nationally, securing listings with major retailers.
Initiated trade marketing and cost-effective social media campaigns to maximize reach within budget constraints.
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Distribution and Expansion:
Emphasized distribution and expansion efforts in the first year, testing product placement strategies.
Trimmed the portfolio in the second year based on consumer preferences and launched new products to fill gaps.
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Focus on Convenience and Health:
Positioned the brand as a convenient and healthy snack option.
Targeted impulse areas in stores, campaigning for space at tillpoints without financial contributions based on market trends.
Results:
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Achieved a tripling in the size of OTG Snacks' South African business in the first year.
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Sustained double-digit growth over two consecutive years.
Strategic Initiatives:
Impulse Area Targeting:
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Campaigned to retailers for strategic placement in impulse areas, capitalizing on market trends.
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Secured space at tillpoints, offering healthy options for impulse purchases.
Portfolio Optimization:
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Trimmed the portfolio based on consumer preferences, focusing on repeat-purchasing products.
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Developed and launched new products to enhance the brand's offerings.
Revamped Packaging for Shelf Impact:
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Modified packaging to ensure packs stood out on shelves, attracting consumer attention.
Key Learnings:
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Consumer-Centric Approach:
Tailoring the portfolio based on consumer preferences and repeat-purchase behavior.
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Strategic Retail Partnerships: Successfully securing national listings with major retailers, expanding market reach.
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Cost-Effective Marketing:
Achieving significant growth with limited budgets through targeted social media and trade marketing.
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