Capturing growth from the dairy market

  • Africa
  • Route-to-market


17% increase in operational margin due to 11% increase in turnover and significant efficiency gains.


After years of strong market growth, the client faced increasing pressure due to an economic slowdown. On the revenue side, the client needed to find growth by gaining market share in a very complex market while keeping operational costs down — all this with a portfolio requiring daily visits to the point of sale due to short shelf-life.


A very detailed analysis of outlet needs, buying behavior, and sales force routines was executed to understand what type of service level was required. On the cost side, a full ABC cost allocation was designed to calculate profitability at outlet level and set limits on the investment in service level for each cluster of outlets. The conclusion was that the van-sales route-to-market model was limiting the development of premium chilled categories.


The main outcome was a new route-to-market model, with new sales positions, clear responsibilities, and the transformation of the whole organization, including the supply chain team. This model was tested successfully in one of the key markets by a joint client-Globalpraxis team.