Should THG prioritize expanding its Myprotein product range or focus on improving the existing bestsellers' quality and sustainability?

Introduction

The trade-off we're examining today is whether THG should prioritize expanding its Myprotein product range or focus on improving the quality and sustainability of existing bestsellers. This decision is crucial for THG's growth strategy and market positioning in the competitive health and fitness supplement industry. I'll analyze this trade-off by considering various factors including market dynamics, customer preferences, operational capabilities, and long-term business objectives.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking there might be a shift in consumer preferences towards sustainable products. Could you share any data on how our customers value sustainability in their purchasing decisions?

Why it matters: Helps determine if sustainability improvements would drive sales or brand loyalty. Expected answer: Growing segment of customers prioritize sustainability. Impact on approach: Would strengthen the case for improving existing products' sustainability.

• Considering our current product portfolio, I'm assuming Myprotein is a significant revenue driver. What percentage of THG's overall revenue does Myprotein currently contribute?

Why it matters: Helps assess the potential impact of changes to the Myprotein line. Expected answer: Myprotein contributes 30-40% of total revenue. Impact on approach: Higher percentage would justify more focus on improving bestsellers.

• Looking at our operational capacity, I'm wondering about our ability to handle product expansion. What's our current manufacturing and supply chain capacity utilization?

Why it matters: Determines feasibility of expanding product range without significant investment. Expected answer: Operating at 70-80% capacity. Impact on approach: Lower utilization would make expansion more attractive.

• Considering market saturation, I'm curious about our current market share. In our key markets, what's Myprotein's market share compared to competitors?

Why it matters: Helps determine if growth should come from new products or market penetration. Expected answer: Varied across markets, average 15-20% share. Impact on approach: Lower market share might suggest focusing on existing products and penetration.