Organization: A mid-sized company which provides juices and other vegetable ingredients to CPG companies
Focus: Market strategy and new product launch
Business challenge: The company had achieved an innovative break through on how it created its juice concentrated products. The innovative technology preserved taste, nutritional value and color. The implication to their customers would be tremendous and position the company as a thought leader and value added partner versus just a supplier. The company engaged the Growth Strategies practice at Baker Tilly to help them define a product launch and marketing strategy for the new technology.
How Baker Tilly helped: Baker Tilly used their new product launch tool set to evaluate multiple dimensions of the market, competition, product, pricing and propensity to develop a comprehensive product launch plan. The plan was rooted in the expected revenue from the new product and the expected conversion of existing customers. Specifically Baker Tilly:
- Collected syndicated research to understand the key trends in the food and drink industry
- Conducted primary research to understand the key buying behaviors of the target market for a new innovative ingredient product
- Defined a set of value statements based on the research
- Tested the value statements through end customer survey with the target market and buyers do determine propensity as well as price premium against their current solution
- Developed an overall new product launch road map and activities
- Based on the market feedback, developed key marketing messages and dependencies
- Developed the overall marketing approach, tools and timing
- Interacted with the company’s creative agency to develop supporting materials
Results: The company achieved its revenue goals for the new product in each of the first three years since the product launched. In addition, the company was able to secure seven new customers in the first year after launch and subsequently an additional ten new customers in years two and three. Any cannibalization of product was made up by the premium pricing that the company was able to receive.