Travel Retail and Duty Free were operated as two distinct functions within this FTSE30 company, but were engaging with the same consumer at different points of their (consumers’) travels, which resulted in duplication of resources. The challenge was to integrate the two departments so that together they could continue to be fit for purpose and compete effectively.
By using a two-phase approach of Design and Deploy to organisation change, a process was established to ensure that the new way of working was embedded into the organisation with minimum disruption to business as usual.
- By identifying all the processes, activities, capabilities and roles & responsibilities for each department, the strategic intent, guiding principles, and conceptual shape of the newly formed department (top-down approach) were shaped.
- A workshop was run with key middle management to develop the detailed organisational design and to identify any impacts on the organisation not yet highlighted (bottom-up approach).
- Working with the senior management 6 clear principles for the integrated department to guide them during the deployment phase were developed.
- A staggered deployment plan to integrate the two departments including mobilisation and localisation of employees where necessary was developed.
- A communication plan to ensure that employees remained engaged during the transition period and clearly understood why the change was happening was developed.
- Integration into one department achieved within six-months resulting in over £½ million in Cost Savings.
- Minimised the number of redundancies and headcount reduction to just seven by redeploying key staff to other areas within the business
- Minimised employee stress levels, retained team spirit and maintained productivity such that all targets were achieved during the transition period.
The Travel Retail function for this FTSE30 company did not have a clear strategy for purchase, activation and engagement with consumers, nor a robust method in which to measure performance and ROI leading to an inefficient use of investment. The department was under pressure to reduce investment yet improve results, therefore the challenge was how to deliver more for less.
Using traveller data insight & market intelligence a portfolio and market analysis prioritisation model was developed to allow for better analysis and tracking of activities.
Based on the outputs from the prioritisation model, a two-pronged strategy based around consumer reason for travel was developed to ensure that consumers could purchase along their entire travel journey, thereby increasing revenue and trial rates.
Implementation of continual measurement of consumer retention though telephone call-backs at one-month and three-month intervals, enabling a robust measurement of cost per response, cost per acquisition and return on investment.
- Achieved over £1 million in ROI in one-year by using the prioritisation model to identify markets with the greatest opportunity consumer engagement.
- Grew Gross Profit by over £2 million pa and enhanced a key UK brand’s market share by 1% by implementing the new strategic focus to drive revenue and trial across Europe.
One of Europe’s leading and most renowned rolling-paper brands was continually losing market share, brand equity and revenues to competition. The challenge was to develop a strategy that would turnaround the declining performance and provide sustainable long term profitable growth.
The first challenge was to source robust data that would enable a baseline on which to measure performance; in-market research, local market interviews, competitive analysis and industry data was used. Having conducted an analysis of the business and the competitive environment it was found that;
- There was diminishing brand equity across several markets and the brand was becoming increasingly commoditised
- Competition was winning in new consumer segments with limited response due to the length of time taken to get product to market
- Market share and revenues were under pressure across most markets due to the growth of cheaper economy brands.
Working with different stakeholders across the organisation a realistic strategic business plan was developed that addressed the gaps in the brand’s portfolio, identified new markets to enter and developed a new activation platform.
- Identified over £5 million opportunity in revenues by developing new brand ranges.
- Improved the speed to market by 20% enabling quicker launch schedules.
The papers and accessories market was growing in volume and value yet market share and revenues were declining across Europe for this brand. The challenge was to find the root cause, provide recommendations to counteract this and develop an operational plan that could be implemented quickly.
To understand the 3rd party distributor dynamics, to establish a baseline of trade-pricing and to pinpoint where and how revenues were being lost, a multi-country study across 19-markets was commissioned to study the entire value chain from factory to customer.
The study found that there were many different routes-to market with differing levels of costs, margins and control. This resulted in price disparity across international markets, growing grey-trade and declining margins for the manufacturer as distributors could command high margins.
By understanding the root cause of revenue losses, an operational plan was developed that limited supply of product to certain markets, changed distributor prices of products and renegotiated terms of supply with distributors.
- Reduced Supply Chain costs by almost £1 million by identifying the flow of product from factory to consumer and assessing the trade margins at each stage of the process.
- Route to Market maps and value chain analysis created by market & channel which identified the key distributors across Europe.