Source: The Valen Group

Executives at even the top consumer goods companies complain that their grip is loosening on shelf space they used to take for granted and their pathways for national new product launches are clogged. Continued consolidation in the US retail sector is driving unprecedented retailer power and placing increased pressure on consumer goods companies. Channel consolidation and power shifts, driven primarily by companies like Wal-Mart and other aggressive competitors, are continuing to force mergers and alliances as once-competing retailers seek safety in numbers. Retailers are using their growing power to maintain margins by increasing demands for higher trade investment from consumer goods companies. Retailers, especially within the grocery segment where margins are razor thin, continue to invest behind the growth of their high margin private label offerings through greater shelf space allocation, quality enhancements, promotional spending and expansion into new categories. All of these factors increase competition among branded companies that are increasingly fighting for a smaller piece of the pie. Consumer goods companies must change the game in order to win in the future.

Valen Group Marketing Alliances

The Valen Group works with the Fortune 500 and leading branded consumer goods companies to change the game so our clients can compete more effectively at retail.

Building best in class trade strategies and programs requires a solid understanding and prioritization of channel and consumer needs through our Needs-Based Strategy Approach. Once target segments have been identified, one of the proven ways to execute against them is through our proprietary Marketing Alliance Methodology which creates a win-win-win for branded companies, their partners and the retailers.

Marketing alliances enable brands to cut through the clutter at trade and enhance their value propositions through creating a point of difference with retailers and consumers. By capitalizing upon the unique assets and synergies of partner companies, clients can help secure a leadership position and prevent duplication. Moreover, alliances enable companies to build large scale trade propositions without incremental spending through asset pooling. Marketing alliances we develop have one goal in mind, incremental growth. We focus our energies around structuring deals that provide new distribution and incremental merchandising opportunities (incremental displays, new aisles and new channels) where financial return is likely highest.

Why the Valen Group

We have extensive experience in helping Fortune 500 corporations develop strategic alliances:

•  Structured and executed an alliance strategy for the largest new brand initiative in the history of a Fortune 50 consumer products company

•  Developed an alliance strategy for a leading food brand and identified 3 market leading strategic alliance partners to help access new channels, aisles and consumer usage occasions