Building sustainable competitive advantage for a market leader

IMPACT

Volume increase by 10% and EBIT improvement of 15%.

THE ISSUE

A brewery with a dominant position in the market experienced poor growth in terms of turnover and profits. The client concentrated most sales on a single SKU with the objective of increasing production and logistics efficiencies. In order to grow the market and improve profitability, the client designed a segmented marketing strategy, leveraging a broader and more premium portfolio, and realized that the existing route-to-market did not permit implementation of the new strategy.

APPROACH

We performed an outside-in analysis including both market analysis (outlet and wholesaler interviews) and a company analysis (route-ridings with sales organization, delivery trucks, profitability...). This allowed quantifying the market potential with the new marketing strategy and identifying the limitations of the current route-to-market model for the future strategy.

OUTCOME

A new commercial route-to-market model was built, addressing the new market challenges: capacity for acquiring new outlets, ability to develop sell-out, efficiency in the sell-in, and effectiveness in managing third parties. Key elements of this model were developed: positions, functions, sizing, tools, compensation systems, and key performance indicators.

ReLATED CASE