Creating a New Product Category and Improving Profitability

The Client: A Manufacturer of Construction Adhesives and Sealants

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The client had a single SKU with high brand awareness but commodity pricing. They were getting tremendous pressure from their customers to improve the gross margin on this item.


Analyzed the client’s capabilities to understand their technology and conducted end user research to understand product uses in different applications by diverse customer base.


As a result of this understanding, we developed a complete line of technologically superior products based on the needs of the target customer that were project specific and supported higher retail price points.


New products were widely accepted by professionals, retailers, dealers and DIYers. Sales were shifted away from the single commodity product to new higher price point products that performed better in certain applications than the original product. Gross margins and GMROI were significantly improved by selling a complete product line verses a single item.