Insights into Grocery Retail Strategy

The Project

One of Europe's largest grocery and supermarket chains sought to gain a deeper understanding of the operations behind the cake manufacturers that supply their stores. Their objective was to analyze operational costs, the level of automation, and typical raw material expenses across different types of cakes. This analysis was intended to serve as a foundation for potentially expanding the study to include other kinds of desserts, thereby optimizing their supply chain and strengthening supplier relationships.

Challenges and Approach

The primary challenge was obtaining detailed and specific insights into the cake manufacturing industry, which is characterized by diverse production methods and cost structures. The client needed access to experts with firsthand experience in the industry who could provide nuanced perspectives on the operational intricacies and cost dynamics.

Dialectica responded by conducting thorough research to map out the market landscape. We identified and proposed 25 expert profiles, each with current or recent experience in cake manufacturing. These profiles were meticulously screened to ensure they could address the specific topics of interest, such as automation levels and raw material costs.

Our Impact

The client conducted 15 interviews with the selected experts, which provided them with the critical insights needed to make informed strategic decisions. These discussions illuminated the operational intricacies and cost dynamics of cake manufacturing, enabling the supermarket chain to better understand their suppliers' challenges and capabilities.

Equipped with these expert insights, the client was able to refine their strategic approach, leading to stronger and more collaborative relationships with their cake suppliers. They gained a clearer picture of the factors influencing pricing and production efficiency, which facilitated more effective negotiations and collaborations.

This project highlighted Dialectica's ability to deliver targeted high-quality insights that  empower the supermarket chain to optimize their supply chain strategy and explore opportunities for expanding their analysis to other dessert categories. Our commitment to providing high-quality research and expert engagement  proved instrumental in driving client success.