Achieving Competitive Advantage to Accelerate Retail Growth
Challenge
A large multi-national CPG company with several cooperating companies struggled with variable retail execution across its operating divisions. As a result, missed opportunities and uncompetitive retail costs crept in. In need of an outside partnership to deliver a revitalized vision and plan for unlocking a roadmap for sustainable growth, the company asked TPG for help. As challenges were discussed, it became clear that TPG would need to create a cross-divisional retail execution organization that would increase revenue and reduce overall operating costs.
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Discovery
We began by utilizing our proprietary Assessment, Design and Implementation model to develop a highly productive retail execution organization. Upon first-hand engagement with the company and extensive deconstruction of the opposition areas, we constructed a cross-divisional organization and business case, in addition to a single-facing retail customer model. Leveraging this momentum, we executed a comprehensive design, test and implementation phase, followed by Innovative Financial Models to significantly reduce SG&A. At the conclusion, we created a Best Practice to deliver a long-term competitive advantage at the point of sale.
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Impact
The outcome was celebrated as being an innovative approach to retail coverage, thus becoming the company’s Best Practice organization globally. Success continued with +38% increase in customer contact time, +60% reduction in administration & travel time, and 1.5-1.8% incremental volume growth realized. Overall achievement resulted in the lowest known industry cost for retail coverage at significantly less than 1% of net sales.