Assessing Market Potential for a Bakery Goods Client Entering the Snack Food Market
Category
Entering New Market
Challenge
A client in the bakery goods industry sought to expand into the snack food market, leveraging the similarities in distribution channels. They were particularly interested in entering a specific subsegment of the snack food market, as they had a subsidiary capable of supplying the raw materials at a significantly lower cost. However, they were unsure about the market size and potential demand within this subsegment, and key stakeholders needed clarity on this before making any further decisions.
Approach
We began by conducting a detailed market sizing analysis to assess the potential of the snack food subsegment. This involved analyzing industry data, consumer trends, and competitor activity to determine the total addressable market for the specific snack category. We also examined distribution dynamics to ensure that the client’s existing channels could efficiently support the entry into this new market.
Additionally, we evaluated the cost advantage provided by the client’s subsidiary and how it could be utilized to create competitive pricing while maintaining healthy profit margins. Our findings were compiled into a comprehensive report that presented the market opportunity, potential demand, and financial implications of entering the snack food subsegment.
Result
