Joint Business Strategy Renews Growth
Situation
A manufacturer was losing sales and market share in a premium food category. One of its main customers, a large grocery retailer, had similar issues and was testing a new business process to improve its commercial performance. Both agreed to partner in a pilot.
Task
To develop a joint category business strategy with the retailer that would drive sales, profit and market share.
Actions
- A joint team involving both the manufacturer and the retailer was formed, involving sales, buying, marketing, R&D and logistics
- A detailed market analysis and review of shopper behaviour was carried out
- Business objectives, financial expectations and operational requirements were discussed and specified
- Innovation, ranging and promotional plans were agreed jointly
- Submissions from both companies were validated by a neutral third party
Results
- The innovation and in-store activity plan drove footfall and trial
- Both companies made sales, profit and efficiency gains
- The manufacturer grew its market share
- The retailer regained category leadership
- The joint approach created greater trust, openness and co-operation on both sides