Trade & Consumer Goods
Various challenges in commercial and consumer markets
Customers are become more demanding. Globalisation, organic, fairtrade, regionalisation, e-shopping are only a few buzzwords in the retail business. Business models required to address global competition are becoming ever more elaborate. Globalisation, brand management, e-commerce and database marketing appear on the radar screens of high performance trade- and consumer goods organisations.
Design of high performance trade- and consumer-goods organisations as a vital challenge
Business organisations willing to compete in this market environment need fresh ideas and high-performance strategies. In order to realise business ideas, it is necessary to establish processes and structures aligned in an optimal way – to operate within a high performance organisation.
HPO offers support to leading enterprises in the sectors of trade & consumer goods in the development of business models consistent with strategy; the development of innovation engines with market-driven assortment and customer management; the identification of EBIT-improvement potential and levers for optimisation; and the creation and implementation of international sales organisations with global KAM and international subsidiaries. Our clients have been able to realise substantial profit increase in saturated markets thanks to our engagement.
HPO has a command of specific experiences in the sector of trade- and consumer goods:
- Commercial enterprises, wholesale and retail
- Consumer goods companies (Food & Non-Food)
Strategy development & implementation
Initiation of a new strategic orientation
Industry: Wine distributor and retailer
Annual sales: Not specified
Challenges:
- Insufficient profitability
- Abolition of tariff walls endangers traditional role as distributor in the wine business
- Wine market CH is decreasing and traditional specialised wine retailers are losing market shares
Approach:
- Check-up and definition of measures for margin optimisation
- Coaching of the strategy process on the levels of owner, supervisory board (VR), CEO and executive board (GL)
- Strategy development 5S© including market research
Results:
- Differentiated discussion with members of the supervisory board (VR) about possible sustainable roles in the European wine business
- Initiation of a new strategic orientation
- Immediate performance improvement thanks to measures taken for margin optimisation
Corinne Fischer Deputy of the Supervisory Board (VR) and CEO, Bataillard & Cie. AG
High performance in wine-trade despite of changes in the market on large scale
„Choosing HPO was a good decision.
The clear role perception of the consultants and the executive board gave no rise to any doubts that the ball was in our court.
HPO made a considerable contribution to strategic realignment with well-directed coaching and the crude facts of an unbiased view from outside.“
Armin Bieri Member of the Supervisory Board (VR), Bataillard & Cie. AG
With HPO foundation laid to overcome future challenges
"I was impressed by the efficient preparation of sophisticated and consistent options for the process of strategy formulation in the supervisory board of Bataillard. Thanks to this effort we - as members of the supervisory board - have been in the position to decide on the highly important strategic realignment of the Bataillard business on short notice.
The cooperation between the CEO/ executive board in their responsibility for strategy and HPO as moderator and sparring partner has led to a very good result."
Category Management
Growth through innovation & category management in retailing
Industry: Consumer goods & trade, retailing
Annual sales: Over mCHF 150 in sales p.a.
Challenges:
- Collapse of EBIT as a result of reduced sales and increasing capacity costs
- Purchase department determines assortment
- No separation between innovative and operative units, unclear roles
Approach:
- Clarification of strategy and design of a business model in accordance with strategy
- Development of an innovation generator with a market-oriented assortment and customer management
- Design of a business model with outsourced logistics
Results:
- Establishment of capability to innovate as precondition for future growth
- Implementation of innovation & category management with clear roles, responsibilities, interfaces and processes
Profitability increase
Group-wide transparency of customer and product profitability
Industry: Dairy
Annual sales: >2 bn.CHF p.a.
Challenges:
- Squeezed margins and rapidly changing market conditions
- Product and customer portfolios hardly controlable due to highly fragmented information
- Intransparency of profitability on customer / product level
Approach:
- Collection of data missing for profitability assessment, group-wide integration of information
- Identification of EBIT-potential and levers for optimisation
- Definition of measures for implementation
Results:
- Group-wide integrated database with data on profitability
- EBIT potential of >mCHF 50 identified
- Profit improvement by overall mCHF 14 (mCHF 9 within 12 months from project start)
- Development of preconditions for an effective, group-wide profitability management process on customer / product level
Innovation engine
From traditional manufacturer of consumer goods to generator of innovations
Industry: Retailing & trade, manufacturer of consumer goods
Annual sales: Over mCHF 500
Challenges:
- Unclear responsibilities and interfaces between various units
- Drawn out time to market due to inefficient innovation process
- National sales organisation unsuitable for international roll-out
Approach:
- Design and implementation of a business model aligned to strategy
- Development of an efficient innovations generator for the development of new products
- Design and implementation of an international sales organisation with worldwide KAM and country organisations
Results:
- Clear responsibilities, interfaces, and processes
- Time-to-market shortened from 2 years to 6 months
- Growth of revenues in core markets by over 20%