A degrowing bearing company started growing with a turnaround strategy

Background

Despite of a growing market, a UAE based leading bearing company was facing diminishing sales in international market for last three years. The company engaged IKON to address the growth issue and recommend a turnaround strategy. Also the company was seeking help in strategy implementation and building organizational capabilities.

Approach & Recommendations

To identify the root causes of the issue, we started with the diagnostic study. We conducted a thorough analysis of the company’s current marketing & sales strategies, including analysis of sales data and relative performance of each brand and bearing categories across different geographies, combined with customer behavior analysis. Furthermore, few interviews of top management and key officials had been taken to gain the perspective on the issues. In addition, we performed a market assessment to identify growth opportunities in the international markets, to understand retailers perception about the brand and analyze the company’s competitive position.

We identified numerous issues, particularly in the current marketing strategy and the organizational capabilities. For instance, the company was having a weak positioning in few highly growing markets against competitors and that's what shifting the key customers to competitors. Apart from, improper allocation of resources for branding, distribution channel and promotional activities, we found that the sales force effectiveness was limited by sales support, decision power, and tools.

We then set to fix the issues, began with redefining target markets and the brand positioning. Marketing mix models were optimized keeping more focus on pricing which was set for different brands and geographies, marketing communication strategies, adding digital channels to change the perception of customers about brand and generate leads from new targeted geographies and distribution channel. In addition, we had fine-tuned the sales process and tools to improve effectiveness of sales force. Furthermore, we redesigned marketing organization structure defining roles & responsibilities of the team.

For effective execution of turnaround strategy, we developed implementation plan and supported the implementation of more than 100 initiatives over 6 years. Our support services included:

  • Guidance to solve the real-time problems arises while implementing the strategy
  • Decision support to choose creative and marketing collaterals designed by agencies
  • Validating and measuring performance of campaign executed by agencies
  • Tracking the set KPIs and optimizing marketing ROI
  • Analyzing sales periodically to identifying weak performing SKUs, brand and geographies
  • Reviewing the strategy periodically and optimize it wherever required
  • Train the sales team to enhance sales skills and implementation of new sales process
  • Advise on improving ERP system and CRM program
  • Thought leadership to key decision makers

Results

Within one year of strategy implementation, the company regained few lost customers and export sales increased by 17% recovering the losses of last three years. The growth continued consecutive years with increasing market share and opening new markets. The company realized improved market position over the time and the transformation from a traditional organization to a professionally managed organization.