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.
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.
What if we increase our investment?
- The team used Concentric Market® to forecast scenarios.
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
The board approved the strategy, and the sales forecast was 99% accurate for two years in a row.
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