Creating a Multi-Million Dollar Growth Strategy for a Major Sweet Goods Company
Client Situation
Our client was a major sweet goods company who had experienced a significant decrease in sales, leading to a major business restructuring as well as the entry of a new management team. The company's new leadership team wanted to focus the business beyond crisis management by creating a "long-term" vision and plan to stabilize revenues, identify, prioritize and pursue growth strategies, and return the company to consistent profitability.
Demand Strategy Approach
TCG developed a strategic roadmap to drive profitable growth. Leveraging our V-Score methodology, we helped the client prioritize cost reduction efforts. We also segmented the market in order to understand the wants, needs, attitudes and motivations driving consumer behavior in the client's category. Based on these insights, we developed a strategic blueprint and action plan that focused the company's efforts in each channel – targeting the most profitable customer segments and optimizing product offerings to maximize profitable growth. We ensured success by building economic scenarios for alternative actions and providing a blueprint of strategies and actions across the next three years.
Results
- Identified $700 million in revenue growth opportunities worth more than $200 million in increased profit (currently being implemented)
- Above growth will come from:
- Improved performance of the company's retail stores on key drivers of customer satisfaction
- Enhanced consumer perceptions of the brand on dimensions that have the biggest impact on purchase decisions
- Increased presence in a key distribution channel
- New products across all of the company's distribution channels