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Successful Re-branding Strategy for a Multinational Linens Manufacturer

We helped a linens manufacturer unlock massive potential through better consumer engagement and subsequent expansion of its factory.

Sectors : Manufacturing Retail
Services : , ,

Successful Re-branding Strategy for a Multinational Linens Manufacturer 1
Goals

Goals

We were hired to develop a marketing strategy to boost sales and raise the brand image. Additionally, we were asked to conduct a feasibility study to justify whether or not to go ahead with new investments in modern machinery and facility expansion plans.

Situation

Situation

Our client is a major manufacturer of home, hotel and bed linens. They are licensed by many American and European Multinational companies to manufacture and sell themed children bed linen in 6 markets in the GCC. Their revenues were dropping across all points of sales, and their products were losing both visibility and affinity.

Analysis

Analysis

  • Our market surveys revealed that prospects (kids, pre-teens and their mothers) were not identifying themselves with the passive old designs. Children wanted more personable characters and more active themes that they could relate to.
  • Multicultural and multiethnic differences had a significant impact on sales: while one ethnicity preferred images and themes that portray luxury and lifestyle (a glittering Barbie for example), others related more with themes that promoted more socio-cultural values that encourage physical activity and compassion (a child playing with a cat for instance). Colour preferences between the two demographic segments were also quite different.
  • The majority of hypermarkets and department stores used to display the products' side panels to gain shelf-space. Our client did not use side panels in the past as a visual merchandising tool in order to gain awareness, visibility and sales. As a result, they were losing up to 70% of sales due to low exposure.
  • Before our involvement, product display stands were conventional and undifferentiated from those of the competition.
  • Low-visibility, insufficient shelf-space, inappropriate location inside the stores and inadequate refilling of stocks contributed to less than average sales.
  • The company had a basic website that undermined the value of the top international brands this manufacturer was producing under license - their new strong online identity, SEO and e-commerce triggered demand from online retailers.
Actions

Actions

  • Revamped product design in order to match targets' expectations and to motivate them,
  • Revamped packaging design in order to multiply shelf-visibility and awareness.
  • Transformed visual merchandising and product displays at points of sale using different visual aids.
  • Identified market gaps and new product development direction to reach new market segments.
  • Identified and negotiated with new channels of distribution and points of sale that suit this brand's upscale image.
  • Planned and launched new sales promotions, sponsorships and co-branding opportunities.
  • Reactivated old accounts who have previously switched to buy from the company's competitors.
  • Revamped all sales collaterals and marketing communications, including the website and brochures.
  • Re-structured the sales and marketing department; recruited and managed new sales representatives.
  • Developed a new regional media plan (using online and offline channels).
  • Multiplied exports to key regional markets by more than 300% a year by identifying key new importers and middlemen in that market.
  • Owners decided to invest in new machinery to increase production capacity and leased adjacent hangar of 20,000 square feet.
  • Our consultants made sure the product packaging is visible to shoppers no matter how the products were actually displayed on the shelves (front and/or side panels).
  • A team of full-time merchandisers was formed to maintain proper product display and re-stocking according to specific schedules.
  • The factory leased gondola-spaces at key hypermarkets and department stores; an action that boosted sales by 31% on average.