Product Launch and Network Optimization

New product launch and commercial network optimization for an automation distributor

About This Project

Our client, a leading distribution and retail service provider in automation sector, faced a tough challenge when their brand lost competitiveness in the premium segment and experienced sales decline while their commercial team failed to adapt to the ever-changing market condition.

To reverse the company’s poor performance, Altair was asked to re-engineer major elements in its value chain. The specific focus of the project was product relaunching and customer-driven optimization.

Altair’s Solution

As part of a large multi-phase effort over years, the first step Altair took was to collect data and interview dozens of leaders and frontline employees to identify five main areas of improvement. Facts in hand, we worked with the company to develop a strategy to restructure new product launching and sales activity, from organizational design to production processes. We developed the following recommendations on their core challenges:

  • Brand image: With a comprehensive plan of marketing support in channel management, events and advertising, ensure the new product launch gets high visibility in the market and aligns with the sales strategy.
  • Operational problems: Re-vamp the operational model for the future, combining sales planning, programming and execution in an integral process, redefining roles and incentives around the next generation of products.
  • Profitability of the subsidiaries: Implement new costs and returns scheme, and ensure that high-cost salesforce is deployed to cover highest-return opportunities and better align the sales analysts with frontline sales teams.
  • Sales productivity and activity redesign: Unlock near-term productivity by installing a more rigorous performance-focused culture, meanwhile establishing a monitoring system documenting sales data for analysis and feedback, aiming for a more robust sales mechanism.

Outcome

The project had a positive impact on sales, customer satisfaction and productivity of the brand. Compared to previous year, B2B sales increased by 16% and market penetration of the new brand increased by 10%. At the same time, following the implementation of the redesigned sales activity plan, there was visible improvement in overall productivity and salesforce motivation.

Country

Peru

Date
Category
Analytics, Automotive, Mobility
Tags
Cost Structure Analysis, Logistics, Risk Analysis, Smart Cities

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