Case Study: Hardware Manufacturer
|
“My factory sells products to major retailers, but I have no idea what they do with it.” |
|
“I cannot support the sales to the customer, keep my stock levels low or find new channels to market” |
The Organisation
- Organisation’s product distributed all over Australia and offered by all the major hardware retailers
- Many of the larger stores hold no stock and make few sales, but smaller stores of the same brand have high stock/high sales levels
- The only information the company has is through the receipts in their financial system
- The sales are made with no co-ordinated sales strategy or information system
The Issues
- No understanding of the split between sales to new houses and the renovation industry
- No understanding of the market penetration in different geographical areas and thus the potential to grow the market
- No way of knowing how may potential smaller retailers might sell the product
- No sales forecasts to give new potential market channels
The Solution
- Sales data extracted from financial system and restructured by geographical area
- External data obtained to show the total spend on renovations and new houses in each area
- A market share was calculated for each major part of Australia
- The top 25% of sales regions were identified
- Modeling showed that if the top 25% market penetration was repeated for the rest of Australia then sales would triple.
- Lists of all potential retailers were obtained and put against existing sales
- Information used to work out different distribution strategies for different parts of Australia
Do you have similar issues in your organisation? Contact us today to find out how we can assist you. If you complete our form we will also send you regular white papers and advice by email.
More Case Studies
|
