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FMCG Retailer secures Market Leader Position in MENA

From a small-scale family business to a category leader for 7 years on the trot.

Sectors : Manufacturing Retail
Services :

FMCG Retailer secures Market Leader Position in MENA 1
Goals

Goals

The client commissioned us to develop a strategic marketing and brand-building plan in order to become a category leader in Lebanon, Syria, Jordan and the GCC.

Situation

Situation

The client used to import high and medium-end Italian and German brands. The company operated a small factory too. Their assortment consisted of 5 product lines and a total of 190 strategic key units: gardening and irrigation tools, electrical winches, kitchenware and homeware, pesticides and two private labels of flower seeds and pesticides.
The company was facing stiff competition from the much-cheaper Chinese imports that were being dumped on the markets. The client was encountering dwindling sales and market share if contingency plans weren’t drawn up fast enough to maintain and boost revenues in all points of sale (hypermarkets, hardware and paint shops, gardening department stores and flower shops and nurseries).

Analysis

Analysis

The company was a well-managed small family business. It had a flat corporate structure that put the owners under a lot of pressure and diluted their abilities to effectively manage the manufacturing and trading divisions. As a result, valuable sales opportunities were lost and inefficiencies could no longer be tolerated because of the fierce price competition of China-made products.

Actions

Actions

  • Developed the organization structure and supervised the recruitment of personnel.
  • Assisted in selecting which product lines must be continued/discontinued considering target consumers, price position, channels of distribution and competitive products.
  • Developed loyalty plans to maintain excellent relationships with over 200 active accounts.
  • Set rules, procedures and policies to manage a 100 square-meter showroom and a 750-square warehouse.
  • Reduced costs of inventories by liquidating obsolete stocks and reducing the average value of safety stocks to around AED 1.7 Million a year.
  • Participated in negotiating entries into new points of sale that included hypermarkets, large retailers, home appliances stores, landscaping and water treatment contractors, hardware and florist stores.
  • Planned and supervised the production of national advertising campaigns using TV, radio, magazines, newspapers, sponsorships and Exhibitions.
  • Proposed sales promotions to boost seasonal sales and reduce stocks of slow-moving items (by offering cash and quantity discounts).
  • Supervised the design and production of merchandising materials (display stands, posters, handouts, flyers, etc.) and packaging and labelling designs (for pesticides, insecticides and plant seeds).
  • Prevented the slide of the company’s market share. We actually strengthened its positioning as a quality-oriented company by maintaining price-point position and reaching new market segments where buyers had higher purchasing powers.
  • Established the company as a top market leader in its category for 7 years on the trot.