B2C-Business – „Fast Following“ with new market strategies
Fiercely contested competitive markets dominate the consumer goods industry. Despite strong growth in the market, a company for consumer goods is not successful in implementing the strategy of the “Fast Followers”, nor in minimising the gap with the market leader. AXXCON is hereby tasked with increasing the profitability, as well as adjusting and optimising both the customer benefit and cost structure.
In addition to AXXCON’s core competencies in efficiency and transformation projects, project experience in the turnaround of product groups broadens the reference portfolio. Sustainable profit increases in product divisions were able to be achieved through the optimisation, respectively the stabilisation of products with a pre-existing high level of profitability.
Although the turnover for the product segment continues to see strong growth, the customer share within the market remains far below the total turnover. One competitor dominates too strongly with qualitatively and technically superior products. Reasons for this are development backlogs, unstable processes and market entry which is too late. In addition, the product portfolio was continuously expanded in spite of development problems not having been solved.
Together with the segment management, solutions for the restructuring of the business area must be created and implemented in the shortest time possible. On the one hand, short-term measures are to be introduced which do not inhibit ongoing operations and, on the other, a sustainable turnaround must be achieved. An efficient level of collaboration is closely associated with this, for which reason the individual processes and adopted procedures are to be coordinated with one another.
AXXCON’s solution approach and measures
Within the first project phase, the product design, costs and the entire value creation chain are optimised with a view to the customer benefit. In doing so, it is essential that markets, cost and process teams collaborate closely with one another. External analyses of customer requirements are compared with technical product features and benchmarks in the market. While components and development processes are aligned with this, the core team shall develop new price and sales strategies which are based on a detailed market analysis. AXXCON accompanies the tasks as a comprehensive Project Manager, facilitates lacking expertise, and drives the project forward using Quality Gates. Specifically defined quality criteria enable the efficient guiding and monitoring of individual project steps.
The earnings trend was already able to be reversed in the first year. The fast solution to the problems with quality in Development and Production was decisive for this. Clearly defined measures, a structured course of action and intuitive procedures in the team also contributed to the increase in market share, and the corresponding positive results. This means for the customer that the previously tested methodology can be optimally utilised for other segments.
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