Client: A leading European food manufacturer, specialized in dairy foods with strong presence across Asia.
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| Issue: Client had invested over USD 20M in a new factory in a large Asian market in the late 90's, hoping to leverage on GDP growth and consumption patterns shifts. However it had over-estimated demand for its traditional dairy goods. Its plant remained under capacity for four years and ROI was in serious jeopardy. |
Solution: Our team scanned the market for alternative products the client could manufacture and distribute in Asia. Team identified three range of new products the client could manufacture with minimum additional capex investment. After forecasting demand and benchmarking demand over five years our team identified fruit juices as the new growth segment for our client. Market was nascent, demand about to boom and local competition still fragile.
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Approach: Through client, industry experts, consumers and marketplace interviews we developed an integrated view of the market. A five years growth plan was developed in cooperation with the client, encompassing raw material sourcing and distribution channels improvements. |
Engagement ROI: We helped our client to secure and boost market share within eight months. Today the client still enjoys dominant market share in Asia and its plant is amongst most profitable of its global network. |
