The Challenge
Our client wanted to increase market penetration/sales growth in saturated market. Year on Year was in decline and aggressive competitive pricing had begun to erode current market share.
Our Solution
Phalanx Consulting conducted a 2 day business analysis meeting with management and sales staff and facilitated a SWOT and GAP analysis. A greater understanding of the issues facing the business was developed amongst the key decision makers and stakeholders; including:
- An urgent need to improve efficiencies at all levels within organisation;
- Immediate review of pricing structure across product and service suite;
- A need to set KPI’s and effective bonus structure for sales staff;
- Ascertain customer need for more specific marketing materials and support;
- Target specific clients that can create immediate financial impact on organisational growth;
- Develop a differentiation strategy and implement amongst distributors: focus on customer service excellence; and
- A need to instil a team approach to customer issues and include management and sales staff.
Results Delivered
Following the establishment of a prioritised strategy to combat declining sales, Phalanx continued to work with the business throughout implementation. A process for tracking and monitoring progress and responding to market changes was also facilitated.
The implementation of a revised market savvy pricing structure provided an immediate reduction to the declining sales volume. A review of inefficiencies throughout the business and the implementation of standardised business systems assisted in the reduction of overheads and waste; improving profits margins despite a pricing re-structure.
An update to the clients marketing collateral and the implementation of an effective bonus structure for sales staff assisted our client to regain lost market share to previous levels within 8 months. Combined with the customer service focus, customer retention was established; new market share was gained and within 18 months had grown by 12%.
Two years after the initial business analysis, turnover had increased by 20% and profits by 35%.