$300M division of a $1B manufacturer of commercial and industrial equipment struggles with operational complexity resulting from acquisitions.
Challenge: Through acquisitions and organic growth initiatives, the company had accumulated 4 stand-alone brands and multiple channels to market competing regularly for the same customers using similar value propositions and leaving ~40% of the overall market unaddressed. This complex go-to-market setup was driving down margins, driving up working capital and operational complexity, ignored a large group of accessible customers and confused customers and intermediaries.
Project Focus: Reduce complexity and elevate alignment to achieve the right products are sold to the right customers/applications in the right way.
Agreed Upon Solution:
3-brand structure was established where each has unique top-level attributes appealing to distinct customer sets.
New Brand/Product/Channel mix was established to successfully reach ~80% of available customers, increasing the company’s addressable market by over 50%.
Pricing and product specifications were harmonized to ensure the right products get sold in the right place at the right price and service level.
Robust cross-sell programs were put in place to ensure continuity in sales operations and that no sales opportunity gets overlooked.
Marketing and Product Development were reset to align with the new strategy and bring more value to sales channels and customers.
Operational complexity was significantly reduced in procurement, engineering and manufacturing. SKU proliferation as a way to compete was replaced by clear demonstrable brand positions. Go-to-market decision-makers were taught how to create strategic and economic value under the new strategy.
For the most part, the names of our consulting clients and their financial results are confidential. We are happy to provide references upon serious inquiries.
Objective: Lead the industry in reaching the entire potential marketplace, rationalize brand mix to improve customer perceptions, apply appropriate sales and marketing resources to each customer type to maximize market share and profit
Operational Scope: Executive Team, Operations, Sales, Marketing, Product & Pricing Development, Product Support, Intermediaries, Customers
Industry: Manufacturing, B2B Commercial and Industrial Durable Products
Current G-T-M Model: Value Added Resellers, Direct, Online
Company: Public, Middle Market Division
Executive Sponsor: Group CEO