Pivoting from a transactional business relationship to a strategic collaborative partnership for growth.

Challenges

The company is a MNC and major FMCG player operating in a highly competitive environment.

The pressure to achieve growth, coupled with demands from trade customers created a routine of deep discounting and ongoing ad hoc tactical activities. Over time, this routine proved counterproductive. Relationship with trade became strained and likewise team spirit within the company. Furthermore, business growth stalled.

Approach

The Company’s desire is to restore relationship and to grow the business. This led to a new strategy that is oriented to building collaborative partnership with the trade being agreed to. This strategy calls for putting shopper and the market in the center in all business planning with the trade.

To ensure success, the strategy was deployed in three phases which included the following:

Develop new business planning capability that is anchored on shopper insight and data that will stimulate purchase.
Secure customer buy-in to annual business planning and grow the category together.
Win big by rolling out the new strategy with key customers as priority.

BACK

Outcome

Overall, the new strategy benefited the company and its business beyond what was originally hoped for. It has transformed the company and its business altogether.

Within the company, the new capabilities gained helped the trade planning team become more agile, and better at executing their role effectively and convincingly. This in turn uplifted confidence and fostered a strong team spirit. The company has now developed a dedicated high-performance team.

Relationship with the trade were no longer transactional but elevated to strategic business partners where everyone wins. The company has become more capable in advising and designing clearly differentiated approaches for its diverse trade customers that delivers the company’s overall consumer plans.

From a commercial standpoint, the new strategy has seen substantial revenue growth and profit for both the company and for the customers who committed to the new business partnership program. Subsequently, news of the success among these early adopters have paved the way for the company to roll out the strategy company-wide to all customers.