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Case Study

A sweet new branding strategy

Stiff competition was eroding market share of a frozen treat company's formerly-profitable product lines. Bain analyzed the company's product portfolio and recommended that it reposition to produce high-end, higher-margin ice cream products. Thanks to the new strategy, our client reversed its market share decline and gained significant net present value.

  • min read

At a Glance

  • $50M cut in trade spending
  • $20M increase in advertising spending
  • $500M value of company under status quo
  • $700M value of company under new strategy

The Full Story

The Situation

FrozenTreatCo* had lost its edge. Stiff competition was eroding market share of its formerly profitable product lines.

Our Approach

Bain used a "high road/low road" approach to analyze each product and determine a strategic course of action based on which quadrant of the high road/low road framework each product occupied.

Our Recommendations

Bain recommended repositioning the company as the producer of high-end, higher-margin ice cream products. To anchor this strategy, the company needed additional advertising resources.

The Results

FrozenTreatCo implemented the new strategy, reversed its market share decline and gained significant net present value.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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