This world leader in table-top ceramics and glassware manufacture has invested heavily in expanding its production capacity. The client realizes that using traditional dealership distribution channels will not be sufficient to absorb the additional production. This could lead to severe hardships in the form of under-utilised production capacity, higher raw material investment, higher finished goods inventory, stress on working capital, higher cost of production, etc
SCGs team was brought on board to evaluate options available to the client and run the project on behalf of the client
- SCGs Strategy team worked with the stakeholders to develop the business strategy and evaluate the existing dealership distribution model.
- SCGs Analytics team conducted a diagnostic of the business. The team created multiple financial scenarios using current distribution models, a retail model, a franchise model and a combination of the 3 models.
- SCGs Retail team developed the retail & franchising strategy for the business and put in place the requirements for retail & franchising infrastructure. SCGs team also worked on identifying potential franchise partners from among the clients existing distributor base.
- SCGs Real Estate team worked with the client to identify real estate space to open Own stores. In the first year the client opened 7 stores.
- 5. SCGs design team worked in designing the concept store and worked with client contractors in delivering the flagship store. A complete store-opening plan was delivered as part of the solution.
Following the successful business strategy, SCG was able to open 7-Own stores in the first year with an average revenue of £21Mn per annum. The franchising part of business was developed and the business has over 300 franchised outlets.
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