case histories

Clothing / New Market Entry

SUMMARY:

One of the leading apparel brands with decades of experience in clothing industry (member of a European multinational group that manages a diversified portfolio of business in retail, financial  services, technology, telcos and shopping centers) was looking for Italian retail chains to propose a new innovative end-to-end fashion concept management solution.

We identified the profiles of their perspective clients to  developed their pilot store-in-store fashion concept inside an Italian hypermarket.

ISSUE TO BE RESOLVED:

The issue was to repeat with our knowledge and support a previous failed attempt they did themselves.
The reason of failure was the underestimation of the the full situation of the client. For example, who were the actual decision makers within the management and the importance to reassure and involve the current associates during the work in the transition versus a partially outsourced new management approach.

ACTION TAKEN:

We did research and store checks to re-position the offer from Product to Category Management, the new proposal is more consistent with the corporate culture of Italian retailers: the responsibilities of the partnership have been assigned as follows:

  • Our customer: Product Development, Sourcing, Warehousing, Merchandising
  • Retail Partner: Store Management.

RESULT:

A new retailer has agreed to manage a Proof of Concept in one of its hypermarkets in northern Italy, focusing on the problems of Category Management that includes to support some in/out promotional initiatives with branded products.

The results of the action taken are:

  • +10-20% Sales Uplift per Sqm
  • ~30-50% Average Monthly Stock Reduction
  • 100% Guaranteed stock reduction at end of season.

NEXT STEPS:

A rapid growth in the knowledge of specific foreign markets that has allowed us to focus on company priorities, without increasing the fixed costs of the structure, and significantly reducing the time required for specific markets penetration. Agreements have been finalized and have allowed the International Development Manager to achieve the corporate objectives with specific cost and time.

Agri-Food Supply Chains / Franchising

Summary:

One of the leading European manufacturer of cows feeding and milking robot with a hybrid sales branches network (direct and franchisees) for sales and after-sales to farmers, was looking for franchisees partners to sell activity currently done by their local subsidiary.

We identified the profile, then researched and contacted perspective partners in northern Italy. Then we have assisted the company in the negotiation to sell the business previously managed by the subsidiary.

ISSUE TO BE RESOLVED:

Identify the profile, search and select the suitable partners in the local market to propose them to expand their current business, for example:

  • Dealer / agency of: Milking parlor, Cattle Feeding Systems, Agricultural machinery.
  • Sales Manager / Technical Manager interested in an entrepreneurial activity.
  • An entrepreneur (also from different sectors, interested in a financial investment) or a small group of associates.

Several partners were considered but at least one had to be an “active manager” willing to become also an entrepreneur.

    ACTION TAKEN:

    Through tailor-made research in our contact networks, the main industry associations and in the editorial offices of sector magazines, we have selected companies with a business that is complementary but not in competition with that of the customer (same customers or side industry).

    We thus contacted qualified interlocutors that our customer would have not been able or in condition to approach effectively.

    RESULT:

    The customer realised that their initial objective was too ambitious and not sustainable in the short term (due to significant fiscal, financial and trade union issues) while the logic of hiving off part of the territory and clientele, entrusted to a new franchisee, proved successful.

    NEXT STEPS:

    Having identified the Italian partner profile consistent with the company’s needs, the customer is now proceeding with negotiations with other entrepreneurs identified by us to whom to transfer other portions of the territory and clients up to having a franchisee-only sales and post-sales network.

    We were available to follow for some months the next steps to maintain the actions undertaken or to monitor that the resources invested are used to build on/create the activities in the domestic market.

    retail / new market entry

    THE OPPORTUNITY, THE PROBLEM, THE NEED, THE AMBITION:

    With years of experience in the eyewear retail category and at the same time the intuition for the need of a new concept which is the idea of creating space in the market with collections with Italian design, every two weeks, at an affordable price, then today the company intends to grow rapidly abroad.

    It is important to create the base for the growth of shops in some Eastern European countries and in Mediterranean countries by identifying partners that can develop point of sales that can be direct or through franchise stores.

    OUR ACTIVITY:

    Sharing and formalization, alongside the International Development Manager, on the type of foreign partner in search. Progressive interventions concerning:

    1. Definition of the partner profile: company characteristics, elements of distinctiveness, medium-term objectives, advantages to include in planning, cost and revenue sharing scheme.
    2. Presentation of a list of about 15-20 potential companies in line to the partner profile. Our colleagues, in each of the foreign countries, prepare a short profile for each potential partner.
    3. Our local colleagues will contact the selected partners in order to identify if there was an interest in establishing a collaboration. In this way, around 3-5 potential partners can be identified.
    4. Support in meetings with potential partners in order to ensure follow-up on previous contacts, overcome cultural differences, evaluation of meetings and definition of next steps.

    THE VALUE CREATED WITH THE COMPANY:

    A rapid growth in the knowledge of specific foreign markets that has allowed us to focus on company priorities, without increasing the fixed costs of the structure, and significantly reducing the time required for specific markets penetration. Agreements have been finalized and have allowed the International Development Manager to achieve the corporate objectives with specific cost and time.

    FOOD / CONSULTING

    THE OPPORTUNITY, THE PROBLEM, THE NEED, THE AMBITION:

    From years of experience in the production of fresh pasta, and the intuition of the existence of a market opportunity for quality products, the new company is planning to develop a business activity for premium fresh pasta.
    Mentre si produce e si vende, si devono porre le basi per lo sviluppo di strategia, organizzazione, valutazione dei mercati e sviluppo delle linee di prodotto che in termini di branding, marketing, packaging, assortimento e commerciali.

    COMPANY PROFILE:

    A team of shareholders who starts production with second hand machineries previously used by another pasta factory.
    La volontà di fare impresa in modo equilibrato e profittevole la passione per il prodotto e le tradizioni ad esso collegate ed una sana ambizione di crescita.

    OUR ACTIVITY:

    Sharing and formalization together with the business development partners, regarding the positioning of the company, as well as the offer. Progressive interventions concerning:

    1. Production and quality organization systems, with the starting and completion of the ISO22000 certification process.
    2. Progressive adaptation of the functional production in order to satisfy some important and qualified customers in the territory.
    3. Definition of the strategy: from corporate competence to market opportunities.
    4. Definition of the product lines of a new brand, and of the new packaging.
    5. Development and management of media and social media activities.
    6. Participation in some qualified events consistent with the strategic positioning.
    7. Development of the commercial strategy by channels, territories and countries.

    THE VALUE CREATED WITH THE COMPANY:

    Rapid sales and profitability growth during the first three years, that includes visibility, becoming a new reference point in their own market. The launch and development of new product lines, from original recipes to packaging, from marketing to communication. A recognized company within its positioning, projected for further development.

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