Grocery Retailer
Company Name: Private
Sector: Grocery Retail
Owner Type: Private
Background Information
A large grocery store chain and wholesaler found its premier position slipping as several forces chipped away at its performance. Costs were rising faster than revenues and profit and as a result, they were substantially out of line with industry leaders. The company has been focused on aggressive growth of its retail grocery business.
Causes
Building on its extensive wholesale heritage, the company required significant transformation to shift toward its strategic emphasis on retail. This required the development of new strategy, process, systems and organisation structures. As one component of its transformation agenda, company had to rapidly build an entirely new merchandising organisation. This included the development of customer-centric category management capabilities.
Turnaround
We acted as the company’s business transformation partner to support a program geared at re-establishing the company’s premier market positioning. Key strategic issues were identified as the foundation for rebuilding the company’s position:
- Establishing a differentiated market position
- Utilised customer transaction data to identify customer segments through analysis of recency, frequency and value
- Maximizing customer economic profitability
- Delivering a step change for store standards in the form of a Customer Experience Programme
- Created and implemented a Customer Journey for all staff to ensure customer service was aligned to employee performance
- Developed training and ‘trained the trainer’ on the delivery of all business improvements
- Increasing business effectiveness and reducing costs
- Developed a category strategy/portfolio framework that enabled company to assign Category Roles to its suppliers people
- Designed a process by which Leadership Roles were determined using strategic importance, competitive insights and customer equity measurements
We helped manage and govern the overall transformation journey in partnership with the client by developing, implementing, and refining the business transformation initiatives identified above.
Outcome
Improved customer-centric category management strategy and processes by coordinated and consistent people and customer delivery for each category - from corporate to the store – across product, promotion, pricing and placement to enable consistent execution and a compelling customer experience.
