First Penguin Case Study Materials

Despite increased interest in frozen and refrigerated foods, household penetration remains stagnant in key demographics (e.g., younger shoppers, small households, and multicultural consumers).

Participants will develop a strategy to grow household penetration through a combination of merchandising, in-store and digital marketing, and packaging innovations. They must:

• Analyze consumer behavior trends and barriers to purchase.
• Propose category growth strategies that balance premium and value offerings.
• Recommend retailer and manufacturer partnerships to drive trial and repeat purchases.
• Develop a financial case yielding positive unit plans (+ basket sizes), and showing A data-driven growth plan with a clear implementation roadmap for a real-world CPG
  partner.expected sales lift, margin impact, and shopper engagement.
• Present a marketing and merchandising playbook for retailers to execute.

A data-driven growth plan with a clear implementation roadmap for a real-world CPG partner.

Group 1’s core challenge is to strategically expand household penetration within the frozen and refrigerated food categories. Our approach centers on cultivating loyalty within the Gen Z and Millennial consumer bases, recognizing that long-term sustainable growth with these generations is key for retailers and brands success. The reason we are focusing on this consumer base is because they will be the dominant population by 2030, and we must meet these consumers on the platforms they demand. This will be achieved through a multi-faceted strategy focused on understanding evolving younger consumer needs. Our focus will be converting away from home to in home via occasion-based promotions, leveraging modern wellness trends and utilizing AI/Social tools to enhance the shopping experience.

The frozen and refrigerated sections in stores present an opportunity for enhanced engagement and innovation, unlocking potential for increased impulse purchases and premium product sales.

Participants will create a store-of-the-future concept for the retailer’s frozen and dairy aisles, focusing on:

• Shopper Experience & Merchandising Enhancements (e.g., better signage, digital screens, AI-driven recommendations).
• Cross-Promotion Strategies (e.g., meal solutions bundling fresh and frozen).
• Sustainability & Operational Efficiencies (e.g., energy-efficient freezers, packaging optimizations).
• Technology Integration (e.g., mobile app engagement, e-commerce strategies).
• Financial Impact Analysis (ROI projections for store investments).

A concept presentation including visual mock-ups, execution timelines, and a retailer business case.

The frozen and dairy aisles are ripe for reinvention, and the tools to transform them are already here. Our proposal introduces a scalable, tech-powered solution that leverages smart carts, digital shelf tags, and connected in-store technologies to create a personalized, closed-loop shopping experience. By enhancing discoverability, streamlining operations, and promoting cross-category bundling, retailers can drive larger baskets, boost shopper loyalty, and reduce labor strain. Most importantly, this approach unlocks new revenue streams through retail media while working within existing digital infrastructure—transforming overlooked aisles into profitable, shopper-centric destinations.

Retailers and brands struggle with supply chain disruptions, food waste, and sustainability in cold storage and transportation.

Participants will develop an action plan to enhance supply chain efficiency and sustainability by:

• Assessing pain points (e.g., product spoilage, transportation delays, rising costs).
• Leveraging technology (e.g., AI forecasting, blockchain for traceability, energy-efficient logistics).
• Exploring alternative storage solutions (e.g., shared refrigerated warehousing, direct-to-store models).
• Developing a retailer and manufacturer playbook to implement sustainable, cost-effective logistics strategies.
• Calculating the business impact, including cost savings, waste reduction, and sustainability improvements.

A supply chain strategy proposal with an implementation timeline, cost analysis, and sustainability ROI metrics.

Poor inventory management in refrigerated food retailers and manufacturers contributes significantly to food waste, with approximately 108 billion pounds of food wasted annually in the U.S., representing over $408 billion in lost value. Inefficiencies such as overstocking, spoilage, and expired products are common due to inaccurate demand forecasting and inadequate storage conditions along with a lack of cross-functional collaboration. Implementing improved inventory management systems and cross-functional collaboration between sales, procurement, and logistics teams can significantly enhance profitability and operational efficiency. By leveraging AI-driven demand forecasting, businesses can reduce overstock and stockouts, leading to a potential ROI increase of up to 25% through optimized inventory levels. This strategy minimizes holding costs and enhances cash flow, directly impacting profit margins. Consumer insights reveal that
accurate inventory management improves customer satisfaction by ensuring product availability and freshness.

Having solutions-focused playbooks that leverage AI technology such as digital inventory management platforms, streamlined processes and cross-functional collaboration between sales, procurement, and logistics teams can achieve a holistic approach to inventory management and drive sustainable growth and efficiency as well as reduce waste achieve economic savings, environmental benefits, social impact, and improve brand image.

There is more buying power now than ever before. Younger consumers, especially Gen Z and Millennials, have different shopping behaviors, with a preference for e-commerce, social media influence, and fresh/convenient options. However, many frozen and dairy categories still struggle with outdated perceptions of being overly processed or inconvenient.

Participants will develop a modern marketing strategy to attract and retain younger shoppers (while being mindful not to alienate Gen X and Baby Boomer shoppers), by:
• Reframing category perceptions using insights from consumer behavior data.
• Leveraging digital engagement (e.g., TikTok and Instagram campaigns, influencer partnerships).
• Exploring new retail formats (e.g., online direct-to-consumer, subscription models).
• Optimizing in-store strategies (e.g., QR code-enabled meal ideas, interactive displays).
• Providing a financial case that demonstrates the expected lift in sales and customer engagement.

A marketing campaign concept with digital, in-store, and omnichannel components, plus a clear business case for execution.

Challenge
The frozen food category faces a critical challenge: despite growing consumer demand for convenient and nutritious options, it continues to suffer from outdated perceptions, particularly among Gen Z and millennial consumers, who often view frozen products as overly processed and inconvenient compared to alternative categories.

Why It Matters
Addressing this misconception is essential for long-term category growth. Gen Z and millennials currently represent over 40% of total U.S. purchasing power, and their influence will only expand as they age and establish households. Winning with this cohort is not just an opportunity, it’s a necessity. Without relevant positioning and modern marketing tactics, the frozen category risks falling behind in the broader competitive set.

Solution
To meet this challenge, we will develop a full-funnel marketing strategy tailored to the frozen fruits and vegetables segment. This campaign will blend digital-first awareness tactics with point-of-purchase activations, meeting consumers where they are, from their social feeds to the store shelf. We will leverage creator partnerships and influencer storytelling to modernize perceptions, while working with retail partners to enhance in-store presence through retailtainment, packaging updates, and prominent digital features on e-commerce sites. We believe this approach will drive a sales lift of over 6% and increase the relevance for the frozen fruit and vegetable segment. Once proven within this segment, the strategy can be replicated across additional frozen food segments.

Private label frozen and dairy products are seeing strong growth, but national brands still drive innovation and consumer loyalty. Retailers must strike the right balance between private label expansion and branded partnerships to maximize category profitability.

Participants will act as category managers to develop an optimized private label and national brand strategy by:

• Analyzing sales trends and determining which categories are ripe for private label expansion.
• Identifying gaps where national brands should be prioritized for innovation and marketing support.
• Creating a pricing and promotional strategy that balances value perception with profitability.
• Developing a store merchandising strategy (e.g., shelf allocation, signage, online positioning).
• Providing a financial analysis of the impact on margins, market share, and shopper loyalty.

A category management strategy that includes sales projections, pricing recommendations, and a merchandising execution plan.

Striking the right balance between private labels and national brands is no longer just about managing price tiers – it’s about unlocking profitable growth. In the refrigerated and frozen space, private label has evolved from a value-focused offering into a powerful engine for innovation. Retailers are no longer just following national brand trends; they are going beyond that. However, each retailer has unique goals and category nuances, requiring a tailored approach to optimizing the mix of Private Label and Branded assortments. The challenge? Finding the right mix that maintains the trust and traffic-driving power of national brands while accelerating private label innovation that captures emerging consumer demand. This matters because today’s shoppers are more open than ever to high-quality store brands that deliver on taste, transparency, and convenience – especially when inflation makes every dollar count. To drive category performance in frozen and dairy, retailers must balance private label growth with branded partnerships using a tiered pricing model, differentiated promotions, and data-driven merchandising to boost margins, loyalty, and long-term competitiveness.