Background
A consumer durables manufacturer, with a reputation for superior quality in a $2 billion category, was experiencing flat growth in its core business. Historically, its equipment products were priced at the high end and principally handled by dealers. Due to price pressures, customers had begun migrating to mass sales channels.

Our client was looking for a strategy that would leverage its core brand and enable it to sell equipment at lower prices through the mass channel, without damaging its reputation.

Analysis and Teamwork
To better understand customers’ unmet needs, we conducted in-depth research with focus groups and commissioned proprietary quantitative research. In addition, research was conducted to understand dealer channel conflict issues and current channel alignment.

We also evaluated the multi-channel needs of consumers and used economic modeling of channel partner alternatives to highlight a broad opportunity in the mass channel. Based on our analysis of the company’s brand positioning, we determined that the client could target two different customer segments through separate channels, with distinct product lines.

Overall, our client’s new go-to-market strategy, with higher levels of service and customer focus, resulted in increased consideration and improved loyalty to the brand.

Results
The new strategy generated $200 million in incremental sales, as the primary mass channel partner tripled its product offerings.