HRCP Case Study:
From "gut opinion" mediocrity to knowledge-based success

Situation

The client's business planning and marketing plan development process was mostly "gut" oriented and not broadly supported by a fact-based approach. The opportunity to drive profitable growth in the short term was not being realized.

Challenge

Henry Rak Consulting Partners was asked to partner with the Marketing, Sales Planning and Strategic Insights brand team to assess the brand's current situation, identify drivers of previous growth and help optimize marketing plans for the coming year.

HRCP Advantage

HRCP accurately decomposed drivers of consumption growth/declines and identified the most effective and efficient ways to profitably accelerate growth in the coming year.

• Assessed the brand's current situation based on brand performance, marketplace dynamics, environmental issues, competitive pressures and effectiveness/efficiencies of current brand marketing, sales and consumer promotion activity.
• Decomposed brand growth/decline change based on 13 specific drivers affecting consumption on a quarterly and annual basis to inform ways to improve marketing planning strategies and tactics.
• Identified critical marketing objectives that would best deliver against brand business goals.
• Provided specific recommendations to improve marketing plan strategies and tactics while providing a quantification of their impact on the plan.

Results

The comprehensive plan recommended by HRCP delivered an incremental +$6MM in profitable revenue.

• Found key drivers of past year growth driven by distribution gains, stronger trade activity and more effective TV copy on air versus YAG.
• Identified preliminary marketing plan would result in a -$4MM revenue shortfall versus the business objectives.
• Provided specific recommendations to close the gap and exceed plan by +$2MM without negatively impacting profits:
• 1. Reposition some products to better deliver on key benefits.
  2. Introduce a new product while eliminating two weaker SKUs.
  3. Buy down feature price points to previous year levels with a spend back after a price increase.
  4. Increase media spending around a re-positioning improvement.
  5. Stop supporting a sub-line offering in market space where the offering is competitively disadvantaged.