A U.S.-based retailer wanted to expand their pet food category by offering refrigerated pet food and they believed an Australian manufacturer had the solution they sought. Getting the product to shelf would not be easy. A highly complex supply chain process, limited shelf life, and government regulations were just a few of the challenges the retailer and supplier needed to overcome. They called on ArchPoint, with its integrated, cross-functional capabilities, to develop and execute the supplier-to-shelf strategy.
When introducing a new product line to market, ArchPoint uses a five-phase go-to market methodology: Assessment, Strategy, Solve, Launch and Learn and Adjust.
ArchPoint began by validating the opportunity for the retailer by studying the emerging refrigerated pet food category in the U.S. With only one competitor in the market, there was room for choices. ArchPoint demonstrated the category growth potential by comparing the market fundamental in the U.S. to those in Australia, where the category share was 7x larger. ArchPoint also established that the retailer could offer their shoppers the same quality product as the incumbent at 25% lower costs. In addition, the ArchPoint Marketing team studied how they could educate the consumer while the Supply Chain team assessed how to get the product to stores, and ArchPoint’s Sourcing team compiled all government requirements to sell imported product in the U.S. market
As imported refrigerated pet food was a rarity in the U.S., ArchPoint had to create the benchmark for supply chain, marketing and shelf strategies for it. The integrated strategy included the following elements:
• Supply Chain: ArchPoint utilized its freight forwarder’s expertise to determine the quickest route from production to shelf
• Forecasting: Influenced by a limited shelf life, ArchPoint created a lean inventory or just-in-time model based upon existing competitor inventory turns
• Government Compliance: ArchPoint researched all federal, state and local certifications required to sell imported packaged pet food
• Store Testing: As a refrigerator is required to stock the pet food, ArchPoint’s Market Execution Team worked with the retailer to test whether using valuable store real estate for the product had desirable return on investment.
• Marketing Plan: ArchPoint created a comprehensive marketing plan to support sales expansion and educate the American consumer about these novel products
Solving and Launching
ArchPoint aligned the retailer and suppler to the strategy and plan and began to execute: