Responding to a consumer need to affirmatively sanitize refrigerated foods, P&C worked with client designers and engineers to bring to market this superior technology using ultraviolet light. Insights-based product innovation supported by aligned manufacturing, distribution, marketing, and customer care yielded significant growth across their product portfolio.
Diversified Fortune 500 Unleashes Growth With Tailored Strategies for Cash Cows, Tigers, and the Middle
We helped our diversified conglomerate client find new business opportunities, define strategies for the holding company’s smaller businesses, and clarify the strategic and operational role of the center.
P&C Helps This Fortune 500 Conglomerate Evaluate Its Portfolio of Companies to Align with Its Profitability Targets
Our client owned many businesses in sectors that included industrial equipment, automotive components, major domestic appliances, commercial financial services, energy, and real estate development, among others. The company had diversified into several non-related businesses but had failed to achieve its profitability targets.
Its board of directors set a minimum return for all the companies in the portfolio, but many of them fell below their goals. P&C was brought in to help:
Find a new business opportunity that could eventually replace the reliable cash generator (cash cows)
Define strategies for the smaller businesses (tigers) so that they would either achieve their value creation objectives or be divested
Clarify the strategic and operational role of the center to achieve overall growth
P&C Created a Framework for Each of 4 Challenges
Growth in New Businesses
Identify 2-4 profitable business opportunities similar in size to current cash cows
Sustainability of “Cash Cows”
Define strategies to continue milking businesses through turmoil and changes in industry
Strategy for “Tiger Businesses”
Programs to find strategic/operational improvements or divest money-losing businesses
Improve Role of Center
Articulation of new strategy and corporate role
P&C Focused on Product Line Profitability to Determine Divestiture Targets
P&C’s first priority was to redesign the money-losing businesses, or tigers. Rather than divesting whole companies, we recommended that our client divest product lines. We also delivered detailed business plans for three new endeavors and a new corporate role.
P&C’s program resulted in a dramatic increase in ROIC—from 13% to 25% over two years. Our client is now working with us on adjacent business opportunities that we identified.
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
Appliance Retailer Boosts Shareholder Value By Focusing on Execution, Simplification, and Strategy
Our high growth retail client experienced a significant share price decline after missing earnings expectations. We identified the company’s core strengths and performance improvement options. The resulting broad-based performance improvement program created $2.5 billion in shareholder value.
P&C Helps Its Client Take a Step Back to Realign Product & Pricing With Customer Strategy
Our retail client had enjoyed high growth and was planning to double its store count within 2-3 years, as well as increase diversification into new channels, products, and geographies. Unfortunately, they had failed to meet earnings expectations for the ﬁrst time, causing a significant share price decline. Investors blamed a variety of factors including concept saturation and over-diversification.
P&C Worked With the Client to Address the Following Questions
How do we identify, prioritize, and resolve execution limitations that are blocking our ability to rapidly grow?
How can complexity be reduced to lower costs and grow the top line?
What changes should we make to our product and pricing strategies to align with our customer strategy?
P&C Identified the Client’s Core Strengths Before Articulating Its Performance Improvement Options
P&C Launched a Broad Performance Improvement Program for this Retail Client
Consolidated and refocused marketing spend
Targeted programs by segment to grow share of wallet and number of customers
Reprioritized R&D pipeline
Organization and Staffing
Restructured field front line management
Created performance management and incentive system
Optimized store level staffing by store type
Key driver of company store sales out-performance (~10% higher than retail industry average over multi-year horizon)
Centralized procurement function
Developed strategic supplier relationships
Drove $30M+ of annual savings after year one
Product Line Profitability
Assessed true profitability of all store level SKUs
Eliminated or re-priced 1000+ problem SKUs
Rationalized R&D Spending
Drove $11M of annual savings
Implemented store best practices
Enhanced store labor productivity by eliminating admin work
Increased store level automation
Saved $40M in annual labor staffing costs
Redefined store “full potential”
Assessed store portfolio and optimal real estate economics
Improved efficiency in leasing, construction and repair and maintenance
20% annual R&M savings and a 5% increase in new store ROI
P&C’s performance improvement initiatives created $2.5 billion in shareholder value since the beginning of the relationship.
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
In driving product innovation, we target features serving multiple goals. Here, high-efficiency stovetop gas burners both enhance cooking speed for end users and reduce energy usage. In tandem with end-to-end alignment of this client’s value chain, these need-based innovations catapulted them to industry leadership.
Responding to a broad consumer need to affirmatively sanitize dishes, P&C worked with client designers and engineers to bring to market this superior technology using high temperature water and steam. Insights-based product innovation supported by aligned manufacturing, distribution, marketing, and customer care yielded significant growth across their product portfolio.
Responding to a broad consumer need to affirmatively sanitize food, dishes, and laundry, P&C worked with client designers and engineers to bring to market this superior technology using ultraviolet light and other natural mechanisms. Insights-based product innovation supported by aligned manufacturing, distribution, marketing, and customer care yielded significant growth across their product portfolio.
P&C worked with this client to create a portfolio of sustainable and innovative products from customer insights research, design, engineering, and manufacturing all the way through to marketing, distribution, and support. This video, for example, features an advanced air flow technology for ovens.
We are always on the lookout to forge new relationships which deliver innovative opportunities for our clients and their customers. This design partnership represents a marriage of legendary, impeccable brands.
Our COVID-19 response efforts with airlines span the gamut of pre-flight, in-flight, arrival, and back office protocols for both travelers and employees. This client video highlights a service innovation to enable convenient in-airport health testing at scale for returning passengers.
Recognizing the degree of change impacting travelers during the COVID-19 pandemic, we partnered with this client to develop and launch the Wellness Ambassador role to ensure health and wellness throughout the customer travel experience.
Etihad Airways identified the opportunity to develop cutting-edge technology and customer safety standards even prior to the COVID-19 pandemic, and tapped P&C’s expertise across multiple sectors to implement a digital reinvention program including this pre-flight screening capability.
This client is a leading fashion house we have partnered with across multiple initiatives in technology, digital transformation, and strategy — developing rapidly over the past two decades to become a preeminent couture brand.
Nous pensons que les marques doivent être authentiques et refléter activement leurs valeurs fondamentales. Ici, nous nous sommes associés aux Galeries Lafayette pour intégrer leur éthique de responsabilité sociale dans leurs fonctions de merchandising et d’achat, et communiquer cet engagement aux consommateurs via le programme «Go For Good».
We believe that brands must be authentic and actively reflect their core values. Here, we partnered with Galeries Lafayette to integrate their ethos of social responsibility into their merchandising and buying functions, and communicate that commitment to consumers via the “Go For Good” program.
The fashion runway is an essential opportunity for couture brands to present their designs to key buyers and consumers. Here, P&C helped one client achieve their vision with a signature presentation and collection launch approach backed by an industry best-of-class ecommerce and supply chain platforms.
Innovations that deliver clear, sustainable value to consumers–combined with highly effective supply chains, customer support, and consumer marketing–can result in transformative product differentiation and revenue growth. This example showcases a pioneering lighting feature to enhance the performance of refrigerators, part of a portfolio of product innovations that positioned our client as an industry leader in residential appliances.
P&C’s approach to COVID-19 response considers all aspects of customer experience and blends process design with technology implementation. At Etihad Airways, this resulted in a completely transformed set of interactions, ranging from touchless elevators and infrared temperature scanning at the airport to Wellness Ambassadors prior to and during flights.
Product ease of maintenance and reliability is an essential factor in the major appliance market. In collaboration with our client, we introduced this dishwasher innovation to simultaneously streamline maintenance responsibilities for consumers and reduce the prevalence of product support issues.
A common theme we see across our customer experience research is the need to customize performance based upon the occasion; here, our client applies this approach to the design of clothing irons by auto-adjusting steam and heat to the individual fabric.
P&C recognizes that customer care represents a crucial touchpoint for consumers using products across their lifecycle. With this client, we significantly elevated the service levels and responsiveness of that function in keeping with their overall redesigned brand promise.
Some of the most powerful branding campaigns combine distinctive product features with emotional appeal to resonate with consumers. Here, we developed this marketing asset with our client to emphasize the unique steam-cooking ability of their ovens along with their exclusive partnership with a premier sports franchise, FC Barcelona.
P&C helped this client identify consumer pain points that could serve as the basis for product innovation, and then to commercialize the resulting offerings through manufacturing, distribution, marketing, and customer care. Here, we address clothes that are wrinkled following normal drying cycles.
As part of our customer experience research, P&C identifies distinct use cases that can surface unmet needs. Here, we helped this client develop an innovative oven design that enables one appliance to fulfill the role of a double oven, and to improve energy efficiency.
Recognizing a traditional consumer pain point regarding oven cleaning, P&C helped this client develop a unique pyrolytic self-cleaning technology. Repeated across their product categories and aligned with supporting functions, these innovations provided clear value to end users and paved the way to industry leadership.
We worked with this client to meet consumer demand for a fast, efficient, easy to clean cook top. Combined with our collaboration regarding manufacturing, distribution, customer support, and marketing, this brand has become a global leader domestic appliances.
A diverse set of distinctive, value-added features can drive strong differentiation in the minds of consumers; here, our client describes a range of such capabilities for an oven including steam injection, automatic heating, and streamlined cleaning.
Grounding product design in customer needs research often surfaces opportunities to better serve specific segments; here, a compact microwave oven caters to consumers with limited kitchen space and who place a premium upon cooking speed.
High profile sponsorships can drive enormous gains in awareness, consideration, and sales. Here, P&C worked with our client to forge an alliance with FC Barcelona as the club’s Training Partner and crafted this Pros Behind the Pros campaign highlighting our client’s role in La Masia, their feeder system for emerging sports talent.
High profile sponsorships can drive enormous gains in awareness, consideration, and sales. Here, P&C worked with our client to forge an alliance with FC Barcelona as the club’s Training Partner and crafted this Pros Behind the Pros campaign highlighting the team’s uniforms and equipment with prominent references to our client’s brand.