What is strategy?
It is difficult to craft a winning strategy if you do not know what is and what is not a strategy. To better explain the strategy, consider a case of an FMCG.
A fast-moving consumer goods company was struggling with stagnating growth: here is a case of how it reconfigured the strategy to attract winning partnerships, grow its customer base and improve the bottom line.
A fast-moving consumer goods (FMCG) company named “Fresh Options” was struggling with stagnating growth. Despite offering high-quality products, Fresh Options was facing increased competition and a decline in market share.
To overcome this challenge, Fresh Options reconfigured its strategy by focusing on three key areas:
- Attracting winning partnerships: Fresh Options reached out to retailers, wholesalers, and online marketplaces to build partnerships. By working together, Fresh Options could increase its visibility and reach a wider audience. One of the challenges identified during the strategy analysis phase was the lack of reliable suppliers. This meant unreliable sourcing which affected product availability. This became a big challenge since clients wanted quality products, but Fresh Options could not reliably offer them. Fresh Options had to identify farms where the most supplies were coming from; visited them and worked with agriculture value addition partners invested in a model farm, as well as out growers to ensure steady product supplies. This strategy delivered like magic; as Fresh Options was able to control product quality from the farm to the shelves.
- Growing its customer base: Fresh Options conducted market research to understand its target audience and launched new products to meet its needs. The company also invested in marketing and advertising to raise awareness of its brand and products. One of the ideas it got was expanding into partnerships with corporate clients; where it sent proposals and approached human resource officers of companies for fresh fruits and juice supply at a subsidized cost. With a steady demand and reliable supply network, Fresh Options had developed a model that is sustainable and reliable.
- Improving the bottom line: Fresh Options reviewed its cost structure and identified ways to reduce expenses while maintaining high-quality products. The company also implemented lean manufacturing practices to improve efficiency and productivity. Consultants from the Kaizen lean process analysis were hired who helped conduct a detailed business processes review and recommended improvements.
The results of these changes were significant.
Fresh Options’ partnerships with retailers, wholesalers and farmers helped increase its visibility and reach a wider audience; as well as ensure stable supplies which established its brand as reputable and reliable. The new products and marketing efforts helped the company grow its customer base and increase sales. The cost-saving measures and improvements in efficiency helped Fresh Options improve its bottom line.
As a result of these changes, Fresh Options was able to secure a larger market share and become a leading player in the FMCG industry. The company was now seen as a trusted partner by retailers and wholesalers, and as a reliable supplier of high-quality products.
- Building partnerships with retailers, wholesalers, farmers and online marketplaces can help increase visibility and reach a wider audience.
- Conducting market research and launching new products can help grow your customer base.
- Implementing cost-saving measures and improving efficiency can help improve the bottom line.
By reconfiguring its strategy, Fresh Options was able to overcome its challenges and become a successful and competitive FMCG company. This serves as a valuable lesson for any company looking to attract winning partnerships, grow its customer base, and improve its bottom line.
Copyright Mustapha B Mugisa, Mr Strategy. All rights reserved.