Case Study: Driving Product Innovation for a Regional Snack Manufacturer
The Client
A regional snack food company with $80M in annual revenue.
The Challenge
The client was losing market share to healthier alternatives and needed to revamp its product portfolio. Sales of their core products were declining at 2% annually, and new product launches had a success rate of only 35%, below the industry average of 40%. The company needed to innovate its product offerings to regain market share.
Solution
Over an 18-month period, we:
1. Conducted a targeted consumer insights study, analyzing data from 2,000 consumers in the region.
2. Developed a new product innovation pipeline focused on healthier ingredients and regional flavors.
3. Implemented an agile product development process, with cross-functional teams and consumer testing.
4. Created a targeted marketing campaign to drive awareness and trial of new products.
Results
After 24 months:
- Launched 8 new SKUs, with a 45% success rate.
- Increased revenue from new products from 8% to 15% of total sales.
- Improved overall market share from 20% to 23% in key regional markets.
- Reduced product development cycle time from 14 months to 10 months.