The client was a colour and additives master batch manufacturer. Although the company had managed to double the sales growth in two years, it was facing difficulties in sustaining this growth and was losing market share to its competitors. This was attributable to the following factors:
- Sales were targeted only at existing customers
- Absence of a distribution network limited the company’s ability to target new customers
- Competitive price pressures
- Single industry focus
The top management requested UC Strategy to develop a marketing strategy with respect to the above factors.
To develop the marketing strategy, UC Strategy adopted the following approach:
- A methodical approach was defined to diagnose issues & design solutions for the company
- A quick current strategy audit was undertaken to identify key strategic questions facing the company
- An approach to provide answers to key strategic issues entailed identification of all industries that required plastic components in the overall assembly
- In addition to analysing industry trends, UC Strategy identified a set of external & internal criteria to determine the attractiveness of a segment. These criteria were discussed with client’s top management and appropriate weightage was assigned to these criteria
- The engagement team also recommended the groups to be targeted within each shortlisted segment. The target groups within the shortlisted segments were identified based on their buying power and criticality of colour in the end-product
- The Marketing Strategy included analysis & recommendations in the following areas:
- Product mix optimisation for achieving desired capacity utilisation
- Evaluation of positioning, promotional and distribution strategy and recommended initiatives
- Evaluation of organisation structure requirements & recommended initiatives
- Brief Job Descriptions.
The client was provided with an implementation plan detailing out tasks, responsibilities & indicative time frames for achievement of tasks.