Creating Growth in a New Market for an Established Brand


Situation: A canned pasta snack and dinner product aimed at families was experiencing declining sales. The client, a major food retailer, knew that, in the Hispanic market, brand penetration lagged 25% behind the general market. This represented a huge growth opportunity for the brand, given that 40% of the growing Hispanic population is under the age of 19. However, Hispanic mothers accustomed to serving children made-from-scratch meals were wary of dinner from a can. The brand needed the right message to generate demand from kids and gain approval from moms.

Core Strategy Group’s Approach: Finding the right message required a deep understanding of the Hispanic segment. Using targeted quantitative research, we developed a unique value proposition aimed at the Hispanic population. Product positioning focused on wholesome ingredients and great taste. A plan was created to introduce the new messaging and drive incremental sales. We led the selection of a Hispanic agency and worked collaboratively with the team to roll out an aggressive, highly targeted marketing plan that included TV advertising, bilingual point-of-sale material, in-store sampling, sweepstakes and coupons with an ambitious goal of raising sales by 20% in two test markets.

Results: At a mid-point in the test market rollout, sales were up 29%, exceeding expectations and projecting a positive return on marketing investment in less than one year. Hispanic penetration levels have increased more than 50% and plans are on track for a national rollout promising $12 million in additional sales in the first year. Brand awareness and, more importantly, purchase intent, among Hispanics is stronger than ever before.

The Core Strategy Group Difference: The problem that most companies face is that while markets have changed fundamentally, the practice of marketing has barely changed at all. Core Strategy Group combines traditional business focused marketing discipline with the aggressiveness and drive of an insurgent strategic model. It is a model built for clarity, speed and impact. This is the new model for companies who are serious about improving their market performance, revenues, share and return on marketing investment. It provides the most effective way for any organization to compete—and win.