Tag: Manufacturing & Engineering Industry

Differentiated Product Development and Launch: HygieneShield Fridge Freezers

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.

A Fortune Global 500 Refines Strategy to Unleash Growth

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


Challenge I

Growth in New Businesses

Identify 2-4 profitable business opportunities similar in size to current cash cows

Challenge II

Sustainability of “Cash Cows”

Define strategies to continue milking businesses through turmoil and changes in industry

Challenge III

Strategy for “Tiger Businesses”

Programs to find strategic/operational improvements or divest money-losing businesses

Challenge IV

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.

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Appliance Retailer’s Performance Improvement Boosts Shareholder Value

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


  • Revenue

    Marketing/Product Development
    • 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)

  • Product Costs

    Sourcing
    • Centralized procurement function
    • Consolidated vendors
    • Re-negotiated contracts
    • 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

  • Store Operations

    Labor
    • Implemented store best practices
    • Enhanced store labor productivity by eliminating admin work
    • Increased store level automation

    Saved $40M in annual labor staffing costs

    Real Estate
    • 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.

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Differentiated Product Development and Launch: HygieneShield Dishwashers

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.

Differentiated Product Development and Launch: HygieneShield Appliances

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.

Commitment to Responsible Fashion – en français

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».

Commitment to Responsible Fashion

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.

Celebrating Runway Moments

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.

Differentiated Product Development and Launch: HarvestFresh Refrigerators

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.

Reimaging the Passenger Travel Experience to Ensure Health and Safety at Scale

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.

Branding that Resonates

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.

Building a Comprehensive Set of Product Features

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.

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