Revenue Growth Management
Revenue Growth Management for a Global CPG Company
Client challenge:
This consumer goods manufacturer found themselves in a market that was declining steadily in real dollar terms as its target consumer switched to more exciting categories. Despite a modest increase in the size of the target market, purchases per consumer were declining and retail prices were stagnant. Glendinning was engaged to help harness the client’s consumer and shopper insights, diagnose the category growth problem and develop a solution that the client could then implement with its customers.
Strategy:
Glendinning put together a multi-functional team which included Marketing, Sales, Customer Marketing, Insights, Finance and Distribution. Working together for a six month period, the team sifted through the available consumer, shopper and customer data and benchmarked category retail practices against other, more successful categories. The team concluded that other categories had been doing a far better job in segmenting the category, creating an appealing shopping environment and in marketing the category to drive growth. Armed with these insights, the team developed a solution that would deliver the much needed category growth.
Solution: Strategic Category Marketing
Facilitated by Glendinning, the client team created a set of core insights to explain category dynamics and uncover growth opportunities. These insights formed the basis for a new, shopper-oriented segmentation and merchandising strategy that replaced a 20-year old product-based framework. Alongside this segmentation, Glendinning and the team created a set of quantified category drivers that included:
- Marketing the benefits of the category
- Improving on and off-season merchandising and promotion tactics
- Devoting greater attention to growth segments
- Streamlining supply processes to improve in-stock and turns
Result:
The client’s category strategy was adopted by two of its largest customers (comprising nearly 50% of the client’s retail business) and implemented in store. While each customer emphasized different strategic elements and adapted the strategies to fit their model, the results were strikingly similar. Test stores scored dramatic increases (+20%) in category and client sales. The key concepts are now being rolled out across the retail chain and continue to deliver impressive results. The client is now seen as the industry thought leader and Glendinning continues to work to improve its strategy implementation while helping to roll out the program worldwide.