Internet & E-commerce
Exit Preparation/Positioning of Entrepreneurial Specialty Online Retailer: Estimating Market Size and Growth Outlook of a Niche Sporting Goods Market to Support the Sale Process
Conduct a 2-week market study to establish product and user profiles, market drivers and trends, competitive landscape, and channel dynamics, as well as to build a market size model establishing historical and projected market growth rates. Gotham undertook a bottom-up approach to analyze this niche market with no available market data, including: extensive secondary research; ~50 interviews with retail stores and industry experts; consumer surveys; and creation of 3 market sizing models. By enabling the client’s offering materials to show attractive growth prospects, the company was sold to a private buyer at an attractive valuation.
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Exit Preparation/Positioning Of Outdoor Living Product Company: Crafting Analytically Robust Growth Story Showing Significant Whitespace Opportunity And Differentiated Competitive Positioning
Developed an analytically robust sell-side market study report on an outdoor living products company to demonstrate the company’s ability to expand the addressable market by introducing high-quality mid-tier RTA products and capture significant growth. To this end, Gotham: conducted a robust survey of over 10,000 consumers; established the company’s competitive positioning; developed bottom-up market sizing models to determine the size, historic and projected growth, and whitespace opportunities for the company’s product categories; established the company’s target demographic and evaluated how macro trends and consumer behavior shifts will impact the company; and conducted an online review analysis to gain insight on the company’s reputation. The clarity on the company’s strong value proposition and significant growth opportunities generated significant buyer interest.
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Customer & Market Due Diligence Of Foodservice Distributor/DTC Fulfillment Services Provider: Deciphering Nascent DTC Frozen Foods Fulfillment Market
Conducted 3-week customer & market due diligence to establish: frozen DTC fulfillment market size and the ability to sustain COVID-19 bump; the target’s competitive positioning in the frozen DTC fulfillment market; and the target’s reputation/positioning with foodservice distribution customers. Gotham: mapped universe of 350+ frozen DTC food companies; built bottom-up frozen DTC fulfillment market model; conducted 11 DTC fulfillment customer interviews; established competitive landscape of frozen DTC fulfillment services providers; and conducted 13 interviews and 73 online customer surveys of foodservice distribution customers. Gotham’s findings enabled our client to move forward confidently with the potential acquisition.
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Assortment Optimization at Large Catalog Company: SKU, Pricing, Mix, and Placement Rationalization
Led effort to optimize 45,000 active SKU assortment, which yielded ~$7MM in cost savings. Reclassified 45,000 SKUs into approximately 500 classes of merchandise to align with how merchandisers thought about products. Developed reporting to review performance over time, by price point, by occasion, by performance, etc. Optimized assortment by class to eliminate poor-performing items and reduce cannibalization. Adjusted pricing to ensure competitive pricing and proper mix by price point. Determined most efficient catalog and web placement.
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Operations Improvements at Large Catalog Retailer: Strategic Merchandising to Drive Growth
Led transformation of merchandising group from item-pickers for catalogs to fact-based multi-channel category managers. Started with assortment optimization, quickly yielding ~$7MM in savings. Then developed processes for all key elements of strategic merchandising and supporting planning and reporting tools. Transformation has positioned CatalogCo to grow top-line and EBITDA via fact-based precision and a new agility in new product, placement, and ad-spend decision-making.
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Inventory Optimization at Large Direct Marketing Company: Developing and Implementing Enhanced Inventory Management
Developed strategies to optimize inventory to leverage new scale to deliver $20+MM (~25%) in inventory reduction. Analyzed historical demand/inventory to create segmented inventory strategies (e.g., buying closer to demand, everyday item replenishment, new item demand forecasting). Built a tool to assist with everyday inventory replenishment. Turns improved from 1.76 to 2.15 and peak inventory reduced by $10MM.
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