Productivity & Process improvements with focused Marketing help double sales in 4 years
In 1990s, Indian Edible Oil industry’s de-licensing led to a dramatic change of business paradigm. Mushrooming growth in Vanaspati manufacturing capacity, propelled by numerous small & medium players entering the foray, made cost competitiveness vital for survival. With greater economic freedom, some established large corporates started operating like FMCGs, shifting focus to better marketing and sales management; while many others, who didn’t adapt quickly, bit the dust & had to exit. In these turbulent times, sales of a medium sized producer & dominant regional player of Vanaspati & Refined Oils dropped. The company chose to take the challenge head on, consolidate its market position and grow profitably with professional support from Actuate Business Consulting.
Though predominantly a Vanaspati Company, it had
wide range of products & good reputation for Quality
In 1995, under Consultants’ guidance, company’s manufacturing & support processes were re-engineered, that reduced its manpower by 16% in two years and increased availability of products. Supply chain processes were changed substantially to assure faster & timely deliveries. After establishing gains of lower manufacturing Cost, with faster & on-time Delivery, while maintaining good Quality, attention was focused on studying the market requirements, potential of different segments & likely differentiators. Consequently, Sales team was reorganised on product/market segments basis, with a dedicated group assigned for sales of Special Bakery Fats & value added products, which gained substantial volumes over the next 2 to 3 years and brought in good profits.
Sales Targeting, Performance Monitoring & Incentive Schemes for dealers & field force were introduced, resulting in Compounded Annual Growth Rate of 18.6% during the period 1996 to 1999 while the average annual industry growth rate was less than 5%.