Flevy Management Insights Case Study
Market Expansion Strategy for Beverage Company in Competitive Sector
     David Tang    |    Jobs-to-Be-Done


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Jobs-to-Be-Done to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A beverage manufacturer faced stagnation from unmet customer needs, resulting in flat revenue and declining market share. By adopting the Jobs-to-Be-Done framework for product development, the company increased market share by 8% and customer satisfaction by 15%, underscoring the value of customer insights and operational efficiency for growth.

Reading time: 10 minutes

Consider this scenario: A beverage manufacturing firm in the competitive health and wellness drink sector is facing stagnation in its core markets.

Despite having a diverse product line, the company struggles to identify and fulfill the evolving Jobs-to-Be-Done for its current and potential customers. This stagnation has led to flat revenue growth and shrinking market share as competitors introduce more targeted offerings. The organization seeks to redefine its value proposition and product development strategy to better meet customer needs and drive growth.



In examining the situation, one might hypothesize that the root causes of the organization's challenges could include a misalignment between product features and customer jobs-to-be-done, a lack of deep customer insights driving innovation, and potential gaps in market segmentation and targeting. These hypotheses serve as a preliminary foundation for a more in-depth analysis.

Strategic Analysis and Execution Methodology

This organization's situation calls for a structured 5-phase approach to realign its offerings with the Jobs-to-Be-Done framework, a process highly regarded and utilized by leading consulting firms.

  1. Discovery and Insight Generation: Begin with qualitative and quantitative research to deeply understand customer needs, pain points, and the jobs customers are hiring the product to do. This phase includes customer interviews, surveys, and market analysis to uncover unmet needs.
  2. Strategic Opportunity Mapping: Analyze the data collected to identify patterns and opportunities for innovation. This involves mapping customer jobs to existing and potential product features, and identifying gaps in the market.
  3. Ideation and Concept Development: Leveraging insights from the previous phases, brainstorm and develop new product concepts or enhancements to existing products that directly address the identified jobs-to-be-done.
  4. Prototype and Market Test: Develop minimal viable products (MVPs) for the new concepts and test these in the market with a segment of the target audience. This phase focuses on gathering feedback and iterating on the product design.
  5. Strategic Implementation: Based on the market test results, finalize product designs and develop a go-to-market strategy. This includes pricing, positioning, and distribution channel strategies that align with the identified customer jobs-to-be-done.

For effective implementation, take a look at these Jobs-to-Be-Done best practices:

Jobs-to-Be-Done (JTBD) Theory (35-slide PowerPoint deck)
Outcome-Driven Innovation (ODI) (35-slide PowerPoint deck)
Jobs-to-Be-Done (JTBD) Growth Strategy Matrix (32-slide PowerPoint deck)
Jobs-To-Be-Done (JTBD) Framework (157-slide PowerPoint deck)
Jobs to Be Done (JTBD) Framework (189-slide PowerPoint deck)
View additional Jobs-to-Be-Done best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Jobs-to-Be-Done Implementation Challenges & Considerations

One key question often raised by executives is how to ensure that the insights generated from the discovery phase accurately reflect the broader market needs and not just the views of a vocal minority. It's crucial to use a mix of research methods and ensure a representative sample size to mitigate this risk.

Another concern is the scalability of the new or improved offerings. The iterative process of development and testing should include considerations for production scalability and supply chain adaptability to meet potential demand.

Finally, executives often question the return on investment for such an in-depth strategic overhaul. It's important to set clear metrics for success early on, including market share growth, customer acquisition costs, and customer lifetime value, to measure the impact of the new strategy.

Expected outcomes include increased market share, improved customer satisfaction and loyalty, and higher revenue growth through better alignment of products with customer jobs-to-be-done.

Potential implementation challenges include resistance to change within the organization, the need for upskilling or reskilling employees to meet new strategic directions, and the complexity of managing a portfolio of innovations at different stages of development.

Jobs-to-Be-Done KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated.
     – John E. Jones

  • Customer Satisfaction Score (CSAT): Measures the immediate response of customers to the new or improved offerings.
  • Net Promoter Score (NPS): Assesses customer loyalty and the likelihood of recommending the product to others, indicating market acceptance.
  • Market Share Growth: Tracks the change in market share post-implementation, a direct indicator of competitive advantage gained.

These KPIs offer insights into how well the new strategy aligns with customer needs and the effectiveness of its market execution.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

One key insight gained through this process is the importance of continuous customer feedback loops in product development. Even after a product is launched, maintaining channels for customer feedback ensures that the product continues to evolve in alignment with changing jobs-to-be-done.

Another insight is the value of cross-functional teams in the ideation and concept development phases. Diverse perspectives often lead to more innovative solutions that more effectively meet customer needs.

Jobs-to-Be-Done Deliverables

  • Customer Insight Report (PDF)
  • Market Opportunity Map (PPT)
  • New Product Development Plan (Excel)
  • Go-to-Market Strategy Framework (PPT)
  • Implementation Roadmap (MS Word)

Explore more Jobs-to-Be-Done deliverables

Jobs-to-Be-Done Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Jobs-to-Be-Done. These resources below were developed by management consulting firms and Jobs-to-Be-Done subject matter experts.

How to Ensure Alignment Between New Products and Emerging Consumer Trends

Keeping pace with rapidly evolving consumer trends is a challenge for any beverage company looking to expand its market. In the health and wellness sector, trends can shift dramatically within a short period, driven by new research, viral wellness movements, or changes in consumer lifestyle preferences. To ensure alignment between new products and these trends, companies must adopt an agile approach to product development and market research. This involves continuous monitoring of consumer behavior, leveraging social media analytics, and engaging with trend-setting influencers to gain early insights into emerging preferences.

According to McKinsey, companies that rapidly innovate in response to changing consumer trends can see a 30% higher consumer satisfaction rate than those that do not. This highlights the importance of embedding flexibility within the product development process, allowing for quick pivots and iterations based on real-time market feedback. Furthermore, establishing a dedicated cross-functional team tasked with trend analysis and rapid response can enhance a company's ability to stay ahead of market shifts.

Actionable recommendations include utilizing advanced analytics to mine social media data for emerging trends, setting up a consumer insights dashboard that provides real-time feedback from multiple channels, and fostering partnerships with health and wellness influencers to co-create products that resonate with the target market. These strategies not only align product development with current trends but also position the company as a forward-thinking leader in the health and wellness beverage sector.

Addressing the Challenge of Sustaining Innovation in a Competitive Market

Innovation is the lifeblood of the beverage industry, particularly in sectors saturated with competition like health and wellness drinks. Sustaining innovation in such an environment demands a strategic approach that goes beyond traditional R&D. It requires creating an organizational culture that embraces experimentation, failure, and learning. Companies must invest in systems that encourage cross-departmental collaboration, leveraging insights from marketing, sales, and customer service to inform innovation efforts.

A study by BCG found that companies with a systematic process for innovation generate 4 times higher shareholder returns than those without. This underscores the importance of a structured yet flexible innovation process that allows for quick adaptation based on market feedback. Implementing an innovation management platform can facilitate idea generation, prioritization, and development, ensuring that the company remains at the forefront of the industry.

To sustain innovation, companies should also look beyond their immediate industry for inspiration, adopting best practices from other sectors. This could include leveraging technology for personalized product offerings or adopting sustainable practices that appeal to environmentally conscious consumers. Establishing partnerships with startups and academic institutions can also provide fresh perspectives and access to cutting-edge research, further fueling the innovation pipeline.

Optimizing Supply Chain for Rapid Market Expansion

Expanding into new markets or scaling up product lines introduces significant complexities into the supply chain. The ability to quickly respond to demand fluctuations, manage logistics efficiently, and ensure product quality across diverse markets is critical. Optimizing the supply chain requires a combination of strategic planning, advanced analytics, and technology adoption. Companies must develop a flexible supply chain strategy that can adapt to changes in market demand, regulatory environments, and global disruptions.

Accenture reports that companies leveraging AI in their supply chain operations can achieve up to a 10% reduction in logistics costs and a 5% increase in inventory accuracy. These improvements are crucial for companies in the beverage industry, where profit margins can be thin, and product freshness is paramount. Implementing AI and machine learning can enhance demand forecasting, optimize inventory management, and improve logistics planning, ensuring that products are delivered efficiently and cost-effectively.

Furthermore, building strong relationships with suppliers and logistics partners is essential for navigating the complexities of global markets. Companies should invest in supplier development programs and adopt collaborative tools that enhance transparency and communication across the supply chain. This not only improves operational efficiency but also builds resilience against disruptions, ensuring that the company can sustain its market expansion efforts.

Navigating Regulatory Challenges in Global Markets

As beverage companies expand into new geographical markets, they encounter a diverse landscape of regulatory challenges. These can range from product safety standards and labeling requirements to restrictions on marketing practices. Navigating these regulations requires a proactive and informed approach. Companies must invest in regulatory intelligence to stay ahead of changing laws and ensure compliance across all markets. This involves establishing a dedicated regulatory affairs team that works closely with local legal experts to adapt products and marketing strategies accordingly.

A report by Deloitte highlights the importance of regulatory agility in global market expansion, noting that companies that proactively engage with regulators and participate in policy development processes can gain a competitive advantage. This engagement can provide early insights into regulatory changes, allowing companies to adapt their strategies in advance.

To effectively manage regulatory challenges, companies should also consider adopting digital tools that streamline compliance processes. For example, blockchain technology can enhance traceability in the supply chain, ensuring that products meet safety standards across different markets. Additionally, digital labeling solutions can allow for quick adjustments to product labels to meet local regulatory requirements, reducing the risk of market entry delays. By taking a strategic and technology-enabled approach to regulatory compliance, beverage companies can navigate the complexities of global expansion more effectively.

Jobs-to-Be-Done Case Studies

Here are additional case studies related to Jobs-to-Be-Done.

Consumer Insights Revamp for Luxury Fashion Brand in Competitive Market

Scenario: The organization in focus operates within the high-end luxury fashion sector, facing the challenge of aligning its product development and marketing strategies with the evolving Jobs-to-Be-Done of its affluent customer base.

Read Full Case Study

Jobs-to-Be-Done Framework for E-commerce Personalization

Scenario: The organization is a mid-sized e-commerce player specializing in personalized consumer goods.

Read Full Case Study

Education Infrastructure Enhancement for Digital Transformation

Scenario: The organization is a leading provider of education infrastructure solutions in North America, looking to redefine its value proposition in light of the Jobs-to-Be-Done framework.

Read Full Case Study

Emerging Esports Audience Engagement Enhancement

Scenario: The company is an emerging esports platform looking to improve its audience engagement and retention.

Read Full Case Study

Jobs-to-Be-Done Framework Implementation for a Global Tech Firm

Scenario: A global tech firm, struggling with product innovation and customer satisfaction, seeks to adopt the Jobs-to-Be-Done (JTBD) framework to better understand its customers' needs and improve its product development process.

Read Full Case Study

Automotive Retail Innovation for Electric Vehicle Market

Scenario: The organization, a burgeoning electric vehicle (EV) manufacturer, is facing a challenge in aligning its retail strategies with the evolving Jobs-to-Be-Done framework for the modern automotive buyer.

Read Full Case Study


Explore additional related case studies

Additional Resources Relevant to Jobs-to-Be-Done

Here are additional best practices relevant to Jobs-to-Be-Done from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Increased market share by 8% within the first year post-implementation, indicating successful alignment with customer jobs-to-be-done.
  • Improved Customer Satisfaction Score (CSAT) by 15% through the introduction of new product lines that met emerging consumer trends.
  • Achieved a 20% reduction in customer acquisition costs due to more targeted marketing strategies derived from deep customer insights.
  • Net Promoter Score (NPS) increased by 10 points, reflecting higher customer loyalty and market acceptance of the new offerings.
  • Encountered a 5% lower than expected growth in certain markets due to scalability challenges and supply chain constraints.
  • Reported a 30% increase in innovation output, as measured by the number of viable product concepts entering the prototype phase.

The initiative to realign the beverage company's offerings with the Jobs-to-Be-Done framework has yielded significant positive outcomes, notably in market share growth, customer satisfaction, and reduced acquisition costs. These results are directly attributable to the strategic overhaul, particularly the deep dive into customer insights and the agile response to emerging trends. However, the initiative faced challenges in scalability and supply chain optimization, which tempered growth in some markets. This underscores the importance of not only aligning products with customer needs but also ensuring operational capabilities to support these strategic shifts. Alternative strategies, such as earlier investment in supply chain flexibility and more aggressive market testing of scalability, might have mitigated these issues and enhanced outcomes.

Given the mixed but largely positive results, the recommended next steps include doubling down on customer insight generation and trend analysis to keep the product offerings fresh and aligned with market needs. Additionally, a strategic investment in supply chain optimization and scalability should be prioritized to support further market expansion. Finally, fostering a culture of innovation and continuous improvement will be crucial to sustaining momentum and staying ahead in the competitive health and wellness drink sector.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

To cite this article, please use:

Source: Business Resilience Initiative for Specialty Trade Contractors, Flevy Management Insights, David Tang, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Digital Customer Experience Transformation in Ecommerce

Scenario: The organization, operating within the competitive ecommerce industry, is struggling to differentiate its offering and retain customers.

Read Full Case Study

Jobs-to-Be-Done Framework Adoption for Media Conglomerate in Digital Space

Scenario: A multinational media firm is grappling with the challenge of adapting its content offerings to better align with evolving consumer needs in the digital landscape.

Read Full Case Study

Business Resilience Initiative for Specialty Trade Contractors

Scenario: A prominent specialty trade contractor is grappling with the strategic challenge of defining and executing its jobs-to-be-done efficiently in a rapidly evolving market.

Read Full Case Study

Digital Transformation Strategy for Mid-Size Textile Mill in Sustainable Fabrics

Scenario: A mid-size textile mill specializing in sustainable fabrics faces a strategy challenge to meet its jobs-to-be-done amidst a 20% rise in raw material costs and increased demand for eco-friendly products.

Read Full Case Study

Digital Transformation Strategy for Boutique Event Planning Firm

Scenario: A boutique event planning firm, specializing in corporate events, faces significant strategic challenges in adapting to the rapid digitalization of the event planning industry.

Read Full Case Study

Organizational Alignment Improvement for a Global Tech Firm

Scenario: A multinational technology firm with a recently expanded workforce from key acquisitions is struggling to maintain its operational efficiency.

Read Full Case Study

Customer Engagement Strategy for D2C Fitness Apparel Brand

Scenario: A direct-to-consumer (D2C) fitness apparel brand is facing significant Organizational Change as it struggles to maintain customer loyalty in a highly saturated market.

Read Full Case Study

Risk Management Transformation for a Regional Transportation Company Facing Growing Operational Risks

Scenario: A regional transportation company implemented a strategic Risk Management framework to address escalating operational challenges.

Read Full Case Study

Organizational Change Initiative in Semiconductor Industry

Scenario: A semiconductor company is facing challenges in adapting to rapid technological shifts and increasing global competition.

Read Full Case Study

Direct-to-Consumer Growth Strategy for Boutique Coffee Brand

Scenario: A boutique coffee brand specializing in direct-to-consumer (D2C) sales faces significant organizational change as it seeks to scale operations nationally.

Read Full Case Study

Porter's Five Forces Analysis for Entertainment Firm in Digital Streaming

Scenario: The entertainment company, specializing in digital streaming, faces competitive pressures in an increasingly saturated market.

Read Full Case Study

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.