Market and competitor insights

Dairy company wishing to understand its competitors better so as to refine its strategy

What are the intentions, strategies and capabilities of our key competitors? In light of these, how should we refine our strategy?

Stamford Partners gathered information on the market, and the performance, business models and behaviour of two key competitors. We then interviewed retail buyers, former employees of each competitor, industry observers and other industry participants. Using these insights, we developed detailed profiles of each company, and facilitated a ‘war game’ style workshop with client management to predict competitor behaviour and determine resulting strategic options.

The number 2 player had been offering deep-cut promotions for some time. It had just become the minority owner in a joint venture with a large international group and, though small in the new owner’s total portfolio, the brand was the key source of profits for this part of the business. The new owners were thought likely to reduce the frequency and depth of promotions, and seek to add value back to the brand through a relaunch.

Also under new management, player number 3 was investing heavily in a range relaunch positioned directly at our client’s heartland. For the number 3 player, this segment was a small part of its business, and was thought to be lower priority than core segments where it faced intense competition. It was anticipated that after the relaunch period, therefore, the segment would attract relatively little investment from the company.

The first conclusion from the workshop was that attention should focus on addressing the threat from player number 2 by accelerating the proposed relaunch to reinforce our client’s position and anticipate number 2’s relaunch.

Secondly, investment in the segment should be increased to better understand target consumers in order to develop a pipeline of differentiated offers.