RenB Case Study
FMCG
EXECUTIVE SUMMARY
RenB spearheaded a Business Transformational project for a FMCG ( Client) based in India, which is a leading manufacturer in the agrochemicals and pest control industry. The products they were marketing was predominantly home care and haircare. Facing stagnation in revenue growth and challenges in distribution and process inefficiencies, CLIENT sought RenB’s expertise to revitalize and transform its business operations.
Client Background
CLIENT had established itself as a significant player in its industry for the past 55 years in India, but was hindered by stagnant growth, limited distribution networks with strength only in western India and one large city in eastern India, outdated sales and marketing strategies, and lack of process automation depending more on manual information and communication.
The Clients Pain Points
- Revenue Growth Stagnation: A plateau in sales and profit margins.
- Limited Distribution Network: Inability to expand its market reach.
- Process Inefficiency: Lack of standardized procedures and automation.
- Operational Visibility: Suboptimal management oversight of operations.
- Sales and Marketing Team Inefficiency: Outdated strategies and practices, The team skills not matching the new market dynamics.
- Lack of Digital Presence: Absence in the digital and social media landscape.
RenB Solution Framework
RenB approached these challenges with a multi-faceted strategy, focusing on the following areas:
1. 3-Year Strategy and Execution Plan
- Develop a long-term strategic plan with milestones.
- Ongoing support for the first year to ensure successful implementation.
- Year-by-year milestones with flexibility for market dynamics.
2. Opportunity Profiling
- Comprehensive market analysis to identify growth opportunities.
3. Go-to-Market Strategy
- Development of tailored strategies to penetrate new markets.
- Alignment of product offerings with market needs.
- Segment-specific strategies, focusing on demographics and geographics.
4. Robust Marketing Function
- Enhancement of marketing initiatives for better ROI.
- Integration of digital marketing strategies.
- Data-driven marketing campaigns which included advertising, Trade promotions, Product Packaging, Events, Sponsored Events, and many more
- Create and increase the DIGITAL FOOTPRINT, both social media and others
5. Systems and Process Support
- Implementation of Standard Operating Procedures (SOPs) in all relevant functions
- Introduction of automation tools to streamline operations. Phase wise with core functions being implemented in the first phase
6. Operative – Distribution Process
- Expansion and optimization of the distribution network geographically.
- Integration of supply chain management tools for efficiency and reach for the new distribution expanded network.
7. Productive Sales Function
- Revamping sales strategies to enhance productivity.
- Training and development and upskilling programs for the sales team.
- Sales force training in consultative selling techniques.
- Performance tracking through CRM tools.
8. Operative Visibility:
- Implementation of Management Information Systems (MIS).
- Regular monitoring and review mechanisms for continuous improvement.
- Dashboards for real-time operational tracking.
- Monthly performance review meetings with department heads.
The Time Frame: 18 Months
MAXIMUM IMPACT AREA
DISTRIBUTION NETWORK EXPANSION AND SALES
RenB Frameworks Used: Strategy Building, Sales, Marketing, Customer Services, Distribution Network Management, HRD, and Management Best Practices.
1. Distribution Network Mapping and Expansion
- Data Collection: Collated of data on current distribution channels, including volume, frequency, and reach.
- Geographical Analysis: Geospatial analytics conducted
- Competitor Benchmarking: Identified gaps and opportunities in the market.
- Market Identification: Targeted the plan for under-served regions with high demand potential.
- Infrastructure Development: Development of new warehouses with advanced management systems.
- Partnership Strategies: Ensured Local partnerships and strategic alliances.
- Distribution Model Diversification: Executed direct-to-retail distribution and enhanced the e-commerce channels.
- Channel Partner Evaluation
- Capability Assessment
- Market Penetration
- Compliance and Quality Check
- Logistics Optimization
- Route Analysis and Optimization
- Carrier Selection
- Load Optimization
- Inventory Management
- Demand Forecasting
- Stock Level Optimization – FIFO Best Practices
- Performance Monitoring: Implemented KPIs and continuous improvement mechanisms in all Functions of operations
- MIS and Visibility: 35% Real Time with MIS coverage and reporting for all Functions
- RENB RVP Framework Execution: Reviews, Visibility and productivity metrics became a standard
- Feedback Mechanisms
- Digital Platforms
- Regular Surveys
- Feedback Integration
2. Sales and Marketing Functional Expansion
- Sales Team Restructuring
- Marketing Strategy Overhaul
- Digital Marketing Expansion
- Customer Relationship Management with CSI execution
- Market Intelligence Integration
- Outcomes and Impact
CLIENT EXECUTION METRICS
-
Client Strategic Execution Initiatives and Adoption metrics: 72%
-
Client Process and Automation Adoption metrics: 65%
-
Client Manpower Transformation metrics: 50%
-
Client Change Management Acceptance: 62%
-
Client Business Practices Adoption: 70%
TOTAL EXECUTION ADOPTION METRICS: ABOVE AVERAGE
BUSINESS TRANSFORMATION: TOTAL OUTCOME FOR THE CLIENT
Business Growth
- Increased footprint of Distribution network *90%
- Substantial offtake increase per Distributor *60%
- Deeper Retail Penetration *190% Growth
- Substantial increase in revenue and profit margins.
- Significant reduction in operational costs due to process optimization *15%
Operational Metrics
Reduced operational costs and faster turnaround times.
Operational Visibility
Improved decision-making and management effectiveness.
Sales and Marketing Efficiency
Increased brand recognition and customer engagement
Market Coverage
- Market Penetration Rates: Quantifying the increase in market penetration, especially in new regions with a footprint in 70 cities and towns.
- Customer Base Analysis: Detailed demographic analysis of the expanded customer bases on an ongoing basis for market share dynamics
Brand Recognition
- Brand Awareness: Major change in brand awareness and perception based on Brand Re-Vamp Metrics.
- Online Engagement Stats: Increased metrics from digital marketing campaigns, including social media engagement and website traffic.
Distribution Network
- Enhanced market coverage, particularly in previously unexplored territorieslike south and north of India, also consolidated western India and expanded eastern India.
- Improved efficiency in SCM – logistics and inventory management pan India.
Sales and Marketing
- Increased brand recognition and customer engagement at POS for all retail level.
- Higher sales conversions due to targeted and efficient marketing strategies.
- Higher sales due to a more efficient and skilled sales team, sales funnel process and intensive review and monitoring.
Organizational Impact
- Cultivated an adaptive culture responsive to market changes.
- Enhanced employee engagement and skills through training and restructuring
- Innovation Index: Tracking the rate of new initiatives and adaptability to
market changes.
- Employee Engagement Scores: Measuring changes in employee
- engagement and satisfaction as indicators of cultural shifts.
