Case Study: Successful Product Launch in Face of Strong Entrenched Competition
Daniel Feiman
Daniel Feiman
Client

Consumer products company

Problem

A start up niche consumer products firm had a product line with excellent potential. The firm faced 2 major challenges; 1) they didn't know how to capitalize on all of the highly competitive distribution channels; 2). they had limited equity capital & it was not enough not survive a head on industry onslaught.

Solution

I assess the situation, reviewed options & showed the client that the best alternative for them was a phased roll out of the company’s product lines. This allowed for smaller capital investments at each stage and further reduced the risk associated with trying to penetrate their channels (grocery, “big-box,” “specialty retailers,” and drug wholesalers) simultaneously.

I build a financial model that showed exactly when the firm should move to the next phase of the roll out, what was the impact on their cash flow would be & alternatives available. The model also allowed the client to change the inputs as circumstances changed.

Result

The roll out was highly successful. The firm was able to launch the entire product line as planned by "rolling" out in phases. The initial $5,000,000 in capital was enough only because of this approach. The client now enjoys national distribution and an excellent, sustainable reputation & higher than industry margins.