$1.35 million in Savings for a Dairy Manufacturer

M-Brain helped a food manufacturer identify the hidden pitfalls of a planned market entry, leading to a no-go decision, by providing critical market intelligence from local markets quickly and expediently.

About the Client

This M-Brain client is a market leader in the production and distribution of dairy products for European markets. It is a big propontent of high quality milk products and sustainability.

This dairy market leader has a culture that fosters innovation. By anticipating consumer trends, creating new markets and driving sustainable growth, the company has received various awards in Europe for food quality and innovation.

Challenges

The company was considering new European markets for genetically modified free cheese, and the senior management decided it needed a deeper understanding of market opportunities and the appropriate market entry strategy. However, they were three weeks from the time to agree on a final “go” or “no go” decision.

Why they chose M-Brain

They invited M-Brain to very quickly conduct both the primary and secondary research that was needed for clarity on their options, relying heavily on M-Brain’s local market intelligence expertise and research strength in the markets involved.

Methodology

Within a short span of time, M-Brain was able to secure in-depth expert interviews with local market players and visited numerous stores to investigate local market offerings and prices. The research report included a review of the margin structures at different stages of the distribution channels, the role of wholesalers and distributors, product preferences and price levels.

Impact

The company was surprised by some of the findings and recommendations, having leaned towards investing in the new markets. M-Brain demonstrated that there was insufficient consumer demand and too much competition. In addition to that, it was difficult to gain store shelf space and margins were too low. As a result of the initial investment in the research, the Client was subsequently able to save themselves a potential investment of over 1 million Euros with little potential for notable returns.

 

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