Consumer Health Products Industry Case Study

How much budget do we need to reach our goal?

An automotive manufacturer wanted to increase demand  for its vehicle lineup, become more profitable, and improve the efficiency of related product development processes.

Situation.

A health products company had to meet aggressive one-year goals for a product launch. Historically, selling was through professional channels. But this launch would expand distribution to traditional retail. The team was concerned that retail distribution would negatively effect its existing professional channel. The board wanted to see a business case for optimal investment strategy to minimize risk.

Insight.

Concentric Market® evaluated retail distribution levels, pricing, advertising, and messaging to see impact against professional channel sales. This showed that distribution levels exceeding 85% of available retail locations would jeopardize professional channel sales.

Question.

The team used Concentric Market® to forecast scenarios.

What if we increase our investment?

Assuming less than 85% distribution, Concentric Market® was used to forecast sales for multiple investment scenarios to identify where there would be the least variability. The model revealed that with increased investment, risk of missing the sales target would be reduced.

Dollar Sales Forecast

Impact.

The board approved the strategy, and the sales forecast was 99% accurate for two years in a row.


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“By bringing our teams’ collective body of knowledge into one decision-making tool, Concentric Market enables us to test what-if scenarios our current econometric models simply don’t address.”



Senior Research Manager

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