The Company
A WELL ESTABLUISHED UK BASED MANUFACTURING DIVISION OF A PLC, WITH SALES OFFICES AND MANUFACTURING SITES THROUGHOUT EUROPE, WITH ANNUAL TURNOVER OIF £ 220 MILLION.
The Business Problem
The company which had been a leader in it's field through out Europe was bering pressurised by competition and falling prices, coupled with a too diverse and electic product range, an ill defined pricing structure abd excess manufacturing capacity. All this had come about as a result of acquisitions and incomplete assimilation of the different parts of the group. The company needed to slim down its product range, reduce its manufacturing capacity and refocus on serving its core customer base.
The Solution
Avangarde Consulting working very closely with the financial and sales teams within the organisation, carried out an in-depth review of the organisation's activities, manufacturing sites, distribution structure, product ranges, pricing levels and requirements of it's customer base. The outcome of this strategic review was a reduction in the number of products offered, a re-branding and re-positioning of certain product lines, geographic markers and re-defining the marker segments. The key aim of all this was to find where the greatest scope for profitability, product fit and expansion lay.
The Benefits
As a result of the plans put into place, the company was able to achieve significant reduction in the manufacture of unprofitable products, with corresponding decrease in materials, packaging and promotional costs, which led to an increase in profitability. The sales force refocused onto promoting lines that were profitable to the company, which let to a doubling on the return on sales within 12 months. Within 2 years the company achieved a profitable result.




