Case study: Sales growth via distribution

Overview: $100m consumer goods business. Roles and responsibilities were unclear; brand penetration was inconsistent. AltusQ facilitated the introduction of a sequence of new distribution channels. Sales revenues returned to double-digit growth on a more diversified base.

Issues addressed

  • Poor functionality was creating miss-aligned values across the organisation, unclear roles & responsibilities, and hence a culture without drive or accountability
  • The demand management/procurement teams had serially failed to respond to spikes in seasonal demand, resulting in both lost sales and poor distribution relationships
  • Poor/inconsistent market penetration across the brand range.

Actions implemented

  • Conducted a distribution review deep-dive into each market sector
  • Opened new distribution channels, thereby re-positioning the brand to the consumer, and exposing them to the full suite of products
  • Re-aligned the operational model to reduce the dependency on offshore sourcing.

Results achieved

  • New client service model resulted in a more diversified product sales mix, and substantially reduced exposure to seasonal spikes
  • Sales revenues returned to double-digit growth
  • New operational model yielded substantial cost savings in both transport and materials
  • Improved brand recognition and positioning.