Manufacturing Case Study

Background
A family controlled business with a turnover in the region of £10 million and a large manufacturing facility in the UK. Intense and growing competition from imports and a consolidation of its customer base was making life difficult.

Issues
Price competition was increasing and downward pressure on prices was combining with higher raw material costs to substantially reduce margins. The company wanted to find an alternative strategy to that of reducing prices to compete.

CEOSTRA conducted an analysis of the business and worked with the MD and the management team to devise a new and effective strategy for the business.

The shareholders of the company ruled out the closure of the UK manufacturing facility so any strategy had to accommodate that decision.

The company’s products were identical to those of their competitors, any innovations that they introduced were quickly copied and therefore provided only short term advantage. However their customers were receptive to new ideas and would often buy newer products at the expense of existing ones. Packaging design was another potential differentiator.

The company employed a national sales organisation to sell its products and this organisation reported that appointments with the buyers of the major customers were easier to secure if the offer of new product was there.

Support provided
CEOSTRA research and analysis of the available options, proposed a new business and marketing strategy. Advised on new product development and the creation of a mechanism to achieve this by creating a new product development team and supplied a number of original new product ideas. We advised on the improvement of the brand, packaging and communication material. We also changed the focus of management meetings away from operational to strategic issues.

If you would like to discuss any aspect of your business or the issues you face e-mail info@ceostra.com or call 01277 896452