Business Performance Optimization – Reboot / Growth Strategy
Reboot Strategy for a Kidswear Brand to Achieve Faster Growth
Strategy Validation and Future Strategic Roadmap for a Health, Wellness and Beauty Retail Chain
About the Client
The brand operates a pan-India chain of beauty, health & wellness retail outlets but due to internal and external factors, has not been able to achieve the top line and bottom line projections and therefore wants to relook their future strategy.
The objective of the assignment was to analyze in retrospection the things that worked or did not work for the company and undertake Validation of Strategy &recommending a roadmap for the future. Key aspects of the proposed strategy included:
- How has the current strategy fared? Should there be any change in the brand positioning, target customer or the current channel strategy?
- What is the most appropriate positioning, retail format, target consumers and product mix for the brand?
- What should be the revised business target for the next 5 years?
- What will be the financial projections over the next 5 years?
- Market construct and current strategy validation:
- Strategy validation on various parameters including positioning, sourcing/supply chain, retail formats, and expansion plans
- Strategy audit to analyze the current standing vis-à-vis planned strategy
- Competitor and consumer behavior assessment
- Financial & Operational Performance Analysis:
- Detailed financial & operational performance analysis in view of the existing strategy
- Performance benchmarking vis-à-vis key competitors. Areas of strength and shortfall was identified along with changes needed.
- Brand offerings in terms of products, quality, range depth and width, pricing etc. was also benchmarked
- Evaluated adherence to various processes developed and reasons for deviation
- Developed a modified strategic roadmap:
- Key Proposition and Positioning and Branding
- Target consumers and proposed sales channel
- Optimal category / product and sales mix and pricing strategy
- Operating model (own vs. franchisee)
- Identification of key areas of improvement
- Detailed Roll-Out plan highlighting the pace of roll-out, cities for expansion, number and format of stores
- Developed a5 year business and financial plan as per the suggested strategy highlighting revenues, operating expenses, investment requirements and working capital requirements.