Increased market share by 3pp in fragmented trade through an innovative customer segmentation and route-to-market approach.
Mature and highly-sophisticated beverage market. Channels dominated by a few strong players with high presence of exclusivity agreements. While historically focusing on key accounts and improving efficiency, the client had neglected a significant part of the fragmented market and failed to capture the full market potential. In addition, changing demographics had made it very difficult for the client to address evolving market requirements.
A joint effort with the client was used to manage the project’s high complexity. In-depth market analysis, which included customer and distributor interviews and sales force and delivery route-ridings, provided clear insights from the market, especially into its specific mechanics and requirements. The outside-in approach made it possible to perform a pertinent customer-oriented segmentation and to provide comprehensive recommendations on how to capture a significant part of the market potential.
A new segmented route-to-market system was implemented, including newly-defined service levels for each customer segment as well as new processes to be followed regarding sales development, merchandising, order taking, point-of-sale fulfillment, and administrative tasks. Key delivery aspects were also addressed, including a reviewed minimum drop size policy and the newly-defined role of third-party distribution. In addition, all relevant enablers, including organizational structure, IT system requirements, trade marketing support, performance indicators, etc., were clearly outlined in the final plan.
