Case Study 6

Business strategy and implementation for a consumer goods manufacturer


The challenge

A privately-held consumer goods manufacturer was experiencing soft sales in its traditional markets and reduced overall profits. The management team was at odds about which direction to move in. Some thought the product line was mature and would never experience growth and advocated for getting into a wholly new product line. The company owners didn’t agree and wanted to reinvigorate the current product line. I was asked to assist the company in strategic planning to determine the right future for the organization.


What I did

Working with the owners and the leadership team, I led them through an industry evaluation to determine the viability of the current product line and explore business alternatives. We assessed the company’s current position in its markets, competitive products and price points, possible new markets and niches, supply chain possibilities and other industry attributes. The team agreed that there existed a significant opportunity for the company’s products in the mass market, and innovations in product design, production processes, and marketing strategies would likely provide excellent future growth. Using the assessment input, the team developed a new corporate strategy to enter and capture the largest share of the mass market in the U.S. We worked on an implementation plan including organizational changes to better drive new product development and market introductions, communications throughout the company on the change, re-education on world-class manufacturing techniques and production work teams, and other elements to align the organization with the new strategy.


Results

Revenues increased over 600% in the first five years along with a significant improvement in profitability, Wal ~Mart recognition as Vendor of the Year, and expansion into Canada, Europe, and Japan. Powerful and exciting changes transformed the organization into a mass market leader, reenergizing the company and its employees and fueling an extended period of growth. The owners were delighted with the new direction and successful top line and bottom line growth.