The interim manager was commissioned by a traditional Swiss company for chocolate and praline products in the premium segment to open up a new business segment with a secondary brand for selected customers in the German food retail sector. The secondary brand was designed for a maximum of 15 products (chocolate bars and praline packs). The products were to exude value and, with a high-priced recommended retail price, not offer any scope for later price wars with other premium brands.
Second brand to increase sales and boost production capacity utilization
The owner-managed, traditional company with production facilities in Switzerland and Germany was number two on the market after Lindt at the time of the project and supplied confectionery shops and international duty-free stores at airports. Sales totaled EUR 120 million, of which EUR 15 million was generated in Germany.
Sales stagnated due to the relatively low number of customers for the core brand. In addition, production was underutilized, especially at the German site (only 1 shift). Another problem was that the owner did not want to place the core brand in the food retail trade (LEH), as he feared a massive drop in prices due to the aggressiveness of the trade. However, the owner had approved the use of the words "Made by ...." on the back of the secondary brand, meaning that the products were "from a good company".
Names and product concepts developed together with an advertising agency
In close cooperation with an advertising agency, the interim manager, in his role as sales manager at the time, developed the name for the new secondary brand in several workshops. This was to be used nationally and later possibly also internationally. At the start, distribution was to take place primarily in upmarket food retailers (EDEKA and REWE) and specialist retailers (Dallmayr, Käfer, etc.).
The product range and product names were determined and prices calculated in parallel with the naming process. A short time later, the agency presented the first drafts and dummies of a total of 3 different concepts.
Second brand presented to top decision-makers in the German food retail sector
The interim manager and his team used these concepts, dummies and hand samples to present the new brand to 8 top decision-makers at EDEKA and REWE. The name of the secondary brand was convincing - and a preferred concept emerged.
Following this phase, the detailed planning took place. The interim manager coordinated the market launch and the next steps in packaging development and production planning. The market launch in the fall was only 7 months away. The plan was also to take the products to the International Sweets and Biscuits Fair (ISM) in January of the following year.
Six months before the actual launch, two sales representatives with confectionery experience were hired and four retail agencies were recruited for the project. When selecting the agencies, the current interim manager was able to make use of his long-standing network.
Listing takes place in time for the strong end-of-year sales
After a preparation period of around 18 months, the listings in food retail started in early fall. This allowed the strong end-of-year business to be capitalized on. Accompanying measures at the point of sale (tastings, competitions) ensured good sales. The company's own employees and retail agencies ensured optimal shelf placement and sales-oriented merchandise planning.
Sales increase of EUR 5 million and another secondary brand project realized
In the first two years, distribution was expanded and sales of EUR 5 million were achieved with the secondary brand range. Production in Germany was better utilized and ramped up to 2-shift operation during the season (6 months).
As part of the second brand strategy, the manager implemented another project. For the catalog of the company "Sansibar" (Sylt), 4 products were created as a private label. Turnover in the first year amounted to EUR 150,000.
