Business Performance Optimization-Reboot/Growth Strategy

Strategy > Consumer Products and Retail > Business Performance Optimization-Reboot/Growth Strategy

Developing a Strategic Reboot Plan for Accelerated Growth

About the Client

The client, a premium men’s wear clothing manufacturer, going through certain challenges in business growth, wanted to analyze the root causes of their pain points and develop a growth strategy for the brand.

Project Objectives:

The core objective was to undertake an in-depth analysis of the brand, market segment where the brand operates as well as evaluation of consumer’s association with the brand and competitors. Also, to identify the root cause of their key problem areas which included:

Why their shirts are not selling as well as their trousers?
How to crack the southern market for the brand?
What should be the appropriate distribution structure and EBO strategy?
What should be the right organizational structure for the brand?

Deliverables:

1. Internal Analysis:

Root cause analysis of the pain points by analyzing the strategic and financial performance of the brand over the years.
Analyzing the current organization structure, key business processes and expenses/ costs.

2. Market Mapping:

Competitor study: In-depth study of the brand’s geographic focus, market penetration, and channel mix vis-à-vis its competitors so as to analyze the levers to be pulled for growth.
Brand & Consumer profiling: Analyzed the brand’s core customer, positioning, product offering, and pricing in detail and benchmarked it with key competitors.
Trade channel: provided trade dynamics in terms of distribution structures, key channels for growth, value chain partners, trade margins, incentives, discounts, etc.

3. Strategy Formulation & Business Plan Development:

Formulated a reboot strategy addressing key problem areas/ pain points, with a key focus on parameters like brand positioning, consumer connect/ perceptions, channel strategy, and realignment of organizational structure to support business growth.
Developed a 5-year business plan covering the scale, revenues, expenses, and investments for implementing the above strategy and a brief implementation roadmap.

Reboot Strategy for a Kidswear Brand to Achieve Faster Growth

About the Client

An established babywear brand with a national presence across 600 plus Multi-Brand Outlets, major Large Format Stores as well as online channels wanted to reboot its brand in order to achieve faster growth over the next few years.

Project Objectives:

The core objective was to recommend a brand reboot strategy for faster growth, answering the following strategic questions:

How has the current brand strategy fared?
What should be the business target for the next five years and accordingly, the appropriate brand positioning?
What should be the alterations/modifications in the existing strategy?
What should be the rollout plan/expansion strategy?

Deliverables:

1. Detailed as-is-analysis of existing business to understand:

Rationale behind the existing strategy and how has it fared?
What are the competitive advantages of the brand and is it sustainable?
How well has the brand achieved its financial and other performance targets?

2. An overview of the Indian kid’s wear industry:

Industry overview – current market scenario
Competitor profiling and benchmarking – business models, price positioning, product offering, market penetration & business performance
Consumer research –Consumer buying behavior, tastes & preferences, purchase influencers, their pain points, and willingness to spend.

3. Formulated business strategy based on Add / Modify / Delete framework:

Target consumers and share of such consumers in India
Appropriate brand positioning
Product categories and recommended channels, and phase-out plan
Rollout and expansion plan

4. Developed a 5-year business and financial plan as per the suggested strategy highlighting revenues, operating expenses, investment requirements, and working capital requirements and an implementation roadmap

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.

Project Objectives:

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 & recommend 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 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?

Deliverables:

1. 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

2. 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 were identified along with changes needed.
Brand offerings in terms of products, quality, range depth, and width, pricing, etc. also benchmarked
Evaluated adherence to various processes developed and reasons for deviation

3. 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

4. Developed a5 year business and financial plan as per the suggested strategy highlighting revenues, operating expenses, investment requirements, and working capital requirements.