George Faigen is a Partner in the Boston Office of Oliver Wyman. He specializes in helping his clients quickly capitalize on emerging trends in retail and consumer goods sectors. Previously, George spent 15 years in the communications and technology industries where he led major engagements in new product development and market launches.
His experience includes:
Developing new market opportunities within the retail sector across North America, including grocery, DIY, mass merchants, category killers and with CPG companies. Recent work has been on the power of private brands.
A major product development and product launch for a top three software company. George and his team helped streamline the product development efforts, aligning them with the emerging needs of the market. The team created a completely new go-to-market approach successfully launching the product with 12 leading customers across 3 continents, one year ahead of schedule.
Customer-centric marketing. George and his team undertook the largest, worldwide customer segmentation (27,500 customers across 14 countries), creating eight psychographic segments which could be uniquely ascertained with three parameters. This breakthrough was then used to drive change through the marketing and sales organizations, training 400 individuals on how to personalize their interactions with customers, resulting in a double-digit increase in sales productivity.
Wireless industry. George led marketing, business development and sales for three wireless start-ups and was a founder of Kayak Interactive, a leading mobile multi-player game development company in Europe and the US. George also authored, “Wireless Data for the Enterprise” (McGraw Hill), the executive management guide for leveraging wireless technologies and applications for businesses.
George holds a BSME from Carnegie-Mellon University (1st in class) and an MSME from the University of Kentucky. He is also a Licensed Professional Engineer.
Whiteboard Sessions
Monday, September 25, 2017
Hard-Discounters: Here to Stay
Hard discounters, like Aldi and Lidl, are expanding in US markets at an aggressive rate. Aldi expects to have 2,500 stores in less than five years and Lidl, over time, will likely match Aldi as both companies view the American market as well-suited for their private brand offer of high-quality products for very good value and convenient shopping experience. Having been successful in entering 20+ other countries, their track record is uniquely impressive in exporting a retail grocery format.
What does this mean for California grocers?
We believe, based on our client work around the globe, that California incumbent grocers should consider this a significant threat to their business. The mantras of “my customers won’t shop at a hard discounter” and “many outsiders have tried to enter my market and have failed” are as familiar as they are incorrect. Aldi and Lidl’s entry into a market has a well-worn plot line with incumbent grocers ignoring the challenge only to find their customers shifting some of their shopping and trips to Aldi and Lidl.
This group discussion will explore all of the dynamics behind why hard discounting will succeed in the US, and what you can do to win in this environment. Hard discounters are here to stay, so how can you come to terms with this market share erosion and be equipped to take your stores and your offer to the next level.
- Who shops hard discounters today?
- How do Hard-Discounters drive trial and then create loyalty?
- What are the dimensions of the Hard Discounter threat?
- Why do incumbents fail to defend their markets?
- What are the advantages of their business model?
- Where is the Hard Discount format going?
- What offensive and defensive moves can grocers take?
