With multi-pronged initiatives sales grew 45% & profit doubled in 3 years in a matured market
A medium sized edible oils & fats company of North India, with a long history of being an undisputed leader of its regional market, found it tough to grow & sustain profits in a mature market with changing landscape and new entrants.
For finding ways and means to not merely survive but also grow profitably in a competitive market, with brand conscious customers, it decided to seek support from Actuate Business Consulting (ABC).
With detailed analysis of pros & cons of alternative actions, ABC convinced the management to adopt a multi-pronged approach for achieving profitable growth. Action programs covering the full spectrum of sales activities were meticulously planned and executed in a phased manner, sustaining them over next 3 years.
Key change initiatives included:
• Competition Analysis: Analyzing competition town wise as well as product wise
• Market Assessment: Assessing market potential town wise
• Product Basket: Rationalization of Product basket being offered
• Pricing: Use of strategic pricing instead of cost based pricing
• Network: Reinforcing Dealer networks and Field force
• Incentives: Setting targets & performance linked incentives
• IT: Enhancing IT capabilities
By implementing these initiatives in 3 years, the company’s market share increased with improved reach and penetration; sales grew 10 – 15% every year and profit almost doubled.