Imagine that a major competitor has started offering deep discounts and exclusive shelf space deals to key sari-sari stores in your territory. How would you handle this to protect PepsiCo's market share?

Situation

A major competitor has launched an aggressive campaign targeting my key sari-sari store accounts with steep discounts and exclusive shelf space offers, threatening PepsiCo's volume and visibility.

Task

I need to quickly neutralize the threat and retain as much of our shelf presence and sales volume as possible, without igniting a price war that erodes margins.

Action

First, I would gather intelligence by talking to store owners and our field reps to understand the competitor's exact offer: discount percentage, duration, and exclusivity terms. Then I would segment the affected stores by importance. For top stores, I would propose a temporary promotional bundle, like 'Buy 5 cases, get 1 free,' along with increased visibility materials like chillers or signages with a 3-month agreement. I would also reinforce our relationship by offering business development tips, like how to merchandise impulse buys. For mid-tier stores, I would deploy a loyalty program with points redeemable for products. Simultaneously, I would work with marketing to launch a localized consumer promotion to pull demand, making our brand more attractive regardless of the competitor's push. I would track sales weekly and adjust offers as needed.

Result

By responding quickly and tailoring my approach, I would aim to retain at least 80% of the key stores' volume and limit market share loss to under 5% points over the quarter.