Maintaining market share

We advised a confectionery manufacturer who held over 90% of a niche market. When an aggressive new entrant appeared in the market we helped our client devise a business strategy to ensure that their dominance was not abused in an attempt to maintain market share.

We advised on the implications of the competitor’s cross-subsidisation and possible use of loss-leaders on a long-term basis. This encompassed advising on competition with non-related products for placement closest to point of sale in retail outlets, and advising on permissible levels of incentives or discounts to retailers.

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