Optimizing Limited Resources to Unlock Growth
Challenge
An influential, medium-sized consumer goods manufacturer operated in a competitive environment where aggressive acquisitions were the norm. Competing within its narrow market of consumer goods, the manufacturer faced SG&A and trade budgets that had escalated to exorbitant levels. Its key leaders had the foresight to understand that new and better equipped Sales skills would be mandatory to remain competitive. TPG was asked to construct a more effective selling organization through designing a process to improve focus and upgraded quality of work. At the same time, the challenge remained to develop the capabilities required to foster improved results at a lower cost.
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Discovery
We leveraged our proprietary Assessment and Design model to develop new work flows, structure and capabilities imperative to remain competitive. At the foundation, engineering a strategic plan to drive clear vision, objectives and alignment throughout the organization was essential to leading an internal transformation. Cultivating a newly designed Selling organization delivered immediate momentum and growth as a result of Skill and Leadership training, shifting Sales Managers to Business Managers. Through creating a Category Business Planning capability, we were able to reframe the category to customers.
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Impact
Reducing SG&A and Trade Spend from 16.8% to 9.9% of sales delivered tangible evidence of a transformation. Furthermore, 20% of the Sales organization was upgraded, and the manufacturer secured collaboration toward a common goal among all key customers as a result of Category Business Planning. Sales grew +25%, driven by key customers +31%, while maintaining SG&A and trade spending below 10%.