Background and Challenge
A food products manufacturer was seeing its sales drop dramatically as competition intensified – taking share at retail outlets and also pressuring the price premium that the company once commanded. Further, the company’s product line was narrow, which concentrated its risk and limited its growth opportunities.
The company selected L.E.K. Consulting to assist the management team in establishing a new company vision and developing a strategic plan that would provide a platform for growth, diversify the business and ultimately enhance shareholder value.
Approach and Recommendations
L.E.K. first assisted a new management team to develop an updated company vision and values. This required a combination of one-on-one interviews across the organization, workshops with company management, and synthesis into vision and value statements that were branded throughout the company.
Developing the strategy was grounded in a comprehensive “fact base” of the company’s internal capabilities and external marketplace realities: market dynamics, consumer behavior and brand perceptions, competitive landscape, and market adjacencies. To do this, the L.E.K. team executed an extensive primary and secondary research effort, including consumer surveys, retailer interviews, store reviews, secondary market data synthesis, internal capabilities and cost position diagnosis, and multiple customer and financial analyses. As a result of all the analysis, L.E.K. developed a comprehensive five-year strategic plan for the company.
L.E.K. re-energized the company by transforming it from a mature business to a dynamic growth-oriented company. The strategy that L.E.K. helped create currently serves as the company’s “blueprint” for the future, which is in full-swing implementation. L.E.K. has played a key role in implementing many of the recommended initiatives.