Restructuring sales model

IMPACT

Sales increase of 20% and gross margin improvement of 40% due to change of product mix.

THE ISSUE

The company was the clear leader in the main beverage category but was losing market share to the main competitor in other categories. Furthermore, the company was not successful in developing premium product sales, although positive economic evolution showed potential for them.

APPROACH

We performed in-depth market studies which included the analysis of outlets, wholesalers, and sales force performance in terms of effectiveness and efficiency. An outside-in approach laid the basis for understanding issues and identifying improvement opportunities. Flanked by and linked to existing market research and product profitability analysis, improvement opportunities could be clearly valued and prioritized.

OUTCOME

Outlets were segmented according to their potential, and service level was increased for the most attractive segments. Sales force organization was redesigned and specific support tools were developed (sales pitch, key performance indicators, compensation system…). This was achieved at no additional cost due to efficiency gains. This new sales model was tested and adjusted in a pilot test, which was led and monitored by a client-Globalpraxis joint team.

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