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Case Study: Addressing Competition and Reversing Share Decline

Issue
A technology manufacturer launched a new product line in its most important category. Ever since the launch, the company’s share declined. What was happening? How could they reverse the decline?

Insight
An NPD competitive landscape analysis established who was winning the share this manufacturer was losing and what category dynamics may have contributed. It concluded that markdowns and low-priced market entrants could be devaluing the category, creating a divide between the manufacturer’s assortment and the price point trends occurring across the category.

A deep dive into pricing, promotion, and distribution determined the market was moving away from the manufacturer’s historical strengths. Three major drivers were contributing to the share decline: one competitor’s aggressive promotions early in the year, another competitor’s distribution growth, and growth in a third competitor’s entire portfolio across channels.

Action
The manufacturer is now rethinking its promotion, product and portfolio, and channel strategies. NPD recommendations required a significant mind-shift – new ways to view the brand and new distribution opportunities that could bolster market share. While on the surface it may not seem a good fit with the manufacturer’s brand image, it may be time for the manufacturer to look beyond its current distribution channels. Other channels could offer access to new consumers and previously-overlooked opportunities that could make all the difference. The manufacturer’s leadership is prepared to make some significant distribution changes.

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