New business strategy helps a consumer durables company beat a path to profitability
In this client case Kanvic helped a pioneer in consumer durables return to profitability after years of losses through a comprehensive turnaround programme.
Our client was a pioneer of new technology in an emerging electricals category and led the market in the intial years of industry expansion.
However, the client could not keep pace with market shifts driven by lower price points, rising customer expectations, and high blitz celebrity advertising.
Within a few years the company landed up making losses which kept on accumulating in spite of a number of measures taken by the client in the last few years.
Deployed Performance Navigator to compare against competition
We first built a comprehensive market map of the core product category and its adjacent segments. We then conducted a detailed comparative analysis of the client and its peers using our proprietary tools such as Performance Navigator and Competitor DNA.
Identified gaps in market understanding
Strategic choices on technology, products and customer segments restricted the client's competitive space to a small share of the total market. While growth segments were dominated by the competition. Our analysis also uncovered the relative market appeal of two competing technologies, a key element of driving the business forward.
Developed a 5-point strategy to turnaround the business
We developed a fully customised strategy to increase sales, cut down costs, improve internal efficiencies, and provided extensive training for transformational change.
30% increase in sales
Our sales growth strategy to increase reach and improve sales force effectiveness led to a 30% increase in sales within the first year of implementation.
Improvement in cost structure
Our work brought sustainable improvement in the client’s cost structure, improving EBITDA margins by 4%.
As part of the turnaround process we developed the capabilities of the client’s teams in core areas including sales, marketing and service to sustain long-term improvements.