Strategy development - consumer products

• How should we return the business to profitability and drive subsequent profitable growth?

• IAMCO gathered and analysed data on the market and competitors, conducted interviews with a range of industry participants, including competitors and customers, and developed an assessment of market attractiveness. We analysed internal financial data to assess our client’s economic profitability by channel, brand and pack.



• In a subsequent phase, we developed a new commercial strategy for the business.

• While owned brands and core SKUs were economically profitable, franchise brands and the tail of minor SKUs were destroying value.



• There were customer service issues, and also a lack of clarity about the cost to serve different channels that was negatively impacting RTM execution.



• Rising indirect costs had been a major contributor to declining profitability.



• Our client had a broad portfolio, but had a weak competitive position in some of the most attractive parts of the market, facing competitive pressure on one hand from the market leader, and on the other from a number of new entrants.

• The focus should be on profitable brands and channels. To achieve this, the most profitable, owned brands should be prioritised for investment, shelf space and resource, unprofitable SKUs rationalised, a new RTM approach adopted, and supply chain reconfigured to support the changed portfolio and deliver indirect cost savings.