The client is a Top 5 household appliance brand in a South American country, with strong brand recognition and a wide dealer network. Gas water heaters are one of its core categories, serving both urban and rural markets.
However, despite its market position, the brand faced a growing challenge:
its gas water heater product line had not been updated since 2017, this led to several structural issues:
Product designs became outdated and visually indistinguishable from competitors
Core models no longer aligned with evolving consumer expectations
Competition intensified, especially in price-sensitive rural regions
Market offerings became increasingly homogeneous, driving price wars
Although the brand had worked with its previous supplier for many years, new product development was extremely limited. The supplier lacked sufficient R&D capability, flexible manufacturing capacity, and the ability to support iterative product upgrades.
As a result, the client began losing momentum in both dealer confidence and end-market competitiveness.