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CASE STUDY: IHOP
Expanding Consumption Occasions Through Licensing.
 
Opportunity
When the belt-tightening economy resulted in fewer people dining out, IHOP sought new revenue growth. The Valen Group identified retail packaged breakfast foods as a potential diversification and brand enhancing strategy. A lack of innovation in frozen breakfast coupled with an overlooked opportunity gave IHOP the advantage.

How we did it
The Valen Group collaborated with IHOP to research consumer needs, analyze the breakfast space, and lead the conceptualization effort to identify high potential brand extension opportunities. Developed a strategic roadmap for growth, identified licensing partners, and worked with both Licensor and Licensees to get in front of retailers to discuss innovation opportunities and go to market strategies. 

Results
IHOP generated a secure segment and jump started growth in this overlooked market, meeting growth expectations. IHOP led the industry in launching a line-up of breakfast sandwiches, IHOP at Home, in 3,000 Walmart stores. Gradually expanded into other retail outlets and product forms such as syrup and continued to innovate around product forms. Opportunity based upon category penetration projections are to exceed $100 million in annual sales.



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