A large beauty and personal care company was facing emerging competition and changes in channel dynamics, especially in the US. Despite success in China, which was a newer geography for the business, there was a lack of alignment across the organization on the implications of channel shift in more developed markets. The company’s sales had remained stagnant for four years while the market had grown by almost 50%. Moreover, its performance was being challenged by a new breed of competitors who had disrupted the traditional value chain by becoming more consumer centric. They needed a strategy to take on the upstarts and revive growth.
Grail looked at the client’s capabilities and identified key channels where a shift in strategy was needed. We needed to understand what was behind this new breed of competitors, so we dug into the strategies of more than 100 startups that had experienced exponential growth rates since their launch. Grail then dove into the specific category / channel leaders and studied the key strategies that had helped them achieve tremendous growth trajectories. Finally, we analyzed the global sales data for the beauty and personal care (BPC) market. Grail analyzed the evolution of channel shift overall in the market, but also identified the key product categories / clusters segmented across different geographies, which had experienced the most impact.
Grail recommended a balanced strategy between inorganic and organic growth plans to pursue a shift in their channel approach. Grail also recommended certain organizational level changes that would help track the impact of channel shift in an effective way. The project helped identify $25M in at-risk product sales and provided the foundation for a strategy to protect those sales.