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Situation
A leading consumer packaged goods (CPG) client had established
sales and brand dominance in a household product category.
When the company learned that a competitive CPG firm was about
to launch a new product with a distinct, novel form into the
category, our client turned to Umbria to monitor the impact
of this competitive product launch.
Research
To track online consumer reaction to the competitive product
introduction, Umbria developed a Competitive Tracker report
that focused on multiple dimensions of the product launch:
product form, pricing, and advertising campaign. The outcome
of Umbria’s analysis would help determine whether our
client would take aggressive counter-measures, ranging from
price reductions to increased marketing spending.
Recommendations
Our findings determined that the competitive new product was
not being well received. The online discussions concerning
this product consistently emphasized its high price point,
and the fact that the competitive product’s unique form
was unappealing and clumsy-looking. As a result, our client
continued to keep a close eye on the online discussion about
the competitive product but did not dip into their marketing
budget to deploy any additional damage control tactics.
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