In case PL cookies pose a high threat, expand into the PL cookies market.
Since low manufacturing costs are essential to success in the PL cookies market, the client should focus on cost-cutting:
- Utilize all existing excess capacity
- Gain maximum product knowledge as quickly as possible
- Understand low-cost positions on product ingredients and mix
- Review process improvement/manufacturing efficiency opportunities
- Undertake overhead reduction efforts
- Seeking partnering agreements with retailers
- Explore deals with mass merchandisers to enter PL
In case PL cookies pose a low threat, stay with branded cookies
Success in the branded segment is dependent on differentiation and minimization of the momentum of the PL segment:
- Invest in the brand image to support a premium price
- Make it difficult to copy product
- Manage price gap - explore price increases where appropriate
- Explore exclusive partnering with mass merchandisers
- Consider alternative distribution Germany
- Seek partnering agreements with grocers regarding branded products
- Educate grocers as available