Almasy Consulting: Case Experience
Consumer Products and Services

















The following case descriptions provide details of key questions, issues and challenges that faced our clients. The level of the sponsoring client is indicated. Specific outcomes are provided where possible and when not in conflict with client confidentiality.

Venture Capital Firm – Managing Partner
Could the founder of the Office Club/Office Depot and Inmac® office supplies companies develop and implement a similar concept in retail auto parts? What business structure was needed to launch the first six warehouses in Southern California? What customers could be addressed and what locations provided the best chance of success? Outcome: The project created detailed plans for the launch of a new retail auto parts chain, including target customer base; preliminary site locations; pricing strategy; and merchandising options. The retail start-up is presently a highly successful California retailer.

Global Conglomerate – VP, Planning for Consumer Sector
How could one of the world’s largest industrial firms enter sophisticated consumer entertainment markets where access to distribution was largely in the hands of other companies? What information was needed to evaluate two possibilities: 1.) a potential joint venture in electronic toys with one of the world’s largest toy manufacturers, and 2.) a three-way joint venture in video programming with a major Japanese VCR manufacturer and the largest British entertainment company. Outcome: The project analyzed the capabilities, commitment, and strategies of the proposed alliance partners. Their performance in other joint ventures was reviewed and a risk profile was developed for the proposed opportunities. Based upon negative assessment of the commitment of the proposed parties, neither venture advanced.

Global Conglomerate – VP, Planning for Consumer Sector
How would the world’s largest manufacturer of consumer durable goods review its process for diversification and accelerated growth? What criteria would be used to judge success of new ventures and the managers who operated them? Outcome: The Sector Venture Fund was used by the company as a stage-gate process to explore new avenues of growth. Several hundred new business opportunities were pursued for 18+ months and then evaluated on a go-no-go basis. The Performance Review created multiple measures for evaluation and served as input for management development. The Sector Fund created the first businesses that were to form its highly successful financial start-up.

Office Equipment Supplier – CEO
Could a century-old brand name in office equipment with a leading share position in educational markets, utilize its own or an acquired brand name to enter new distribution channels and product-markets including the home office market? How well did "quality" consumer brands translate into commercial markets? Outcome: The brand equity of the acquired unit was found not to translate well from cameras and lenses to office equipment. In addition, the sharing of product volume across similar distribution channels had few economies-of-scale. The integration of brands was not pursued.

Office Furniture Company – CEO
Could the world’s largest office furniture manufacturer create a new brand that was able to serve consumer/SOHO (Small Office Home Office) retail and mail order markets? What new channel partners, price points, and products would be needed to succeed with the new brand? Outcome: In addition to the feasibility study, the project resolved specific issues such as: consumer market segmentation; sourcing and product design; marketing approach; pricing and terms; and distribution. The new brand became the company's exclusive non-commercial brand and a very profitable division.

Beverage Company – Corporate Planning Group
Would the world’s largest beverage company be better off as a multi-product conglomerate? Would diversification optimize cash flow and economic cycle management to the benefit of shareholders? How did the equity markets value single-product companies versus conglomerates? Outcome: The project consisted of a competitive assessment of the company's leading competitor, modeling the internal cash flow within its portfolio of businesses. While there were certain advantages to the competitor's variety (transportation services, snack foods, beverages, leasing, and sporting goods) there was also a lack of focus. Equity markets were found to have a conglomerate penalty.

Perfume Supplier – CEO, Fine Fragrances Division

How could the world’s largest producer of fine fragrance materials bring "excitement" back into its business? Would it be able to retain its number one position as creator of prestige perfumes? Could the company identify a new level of value-added and establish stronger relationships with its customers? How would environmental and competitive factors impact the future? Outcome: Project consisted of executive coaching session to consider strategic options. Pre-reading was prepared with case histories of similar companies, industry background, and prioritization tools. The senior executive team reviewed its options and screened future opportunities. Action plans were created with team responsibilities, time lines, and performance feedback.

Beauty Supplies Company – Board of Directors
Could one of the world’s leading beauty salon products companies invigorate itself and break through $100 million? What were the causes of the three-year stagnation in growth? Outcome: The project recommended that the company acquire its national grid of distributors, capturing their revenue and margin. This program also provided greater control over new product introduction, quality, and the addition of new retailers.

Computer Firm – Special Projects Team, Consumer Services
How could one of the world’s largest computer companies position itself within the emerging home network opportunity? What profitable applications did homeowners most want? Which alliance partners would be most valuable in the future? Outcome: The project validated the importance of EPGs (Electronic Programming Guides) to consumers and identified the specific applications (e.g., health care advice) they most valued. It also established the brand equity of different alliance partners and their strategic fit with the company.

Fresh and Processed Food Company – VP, Sales and Marketing
How could the world’s leading fresh and processed fruit company expand its consumer franchise? Which markets and customer segments could provide the greatest growth and profitability? How could new channels, prices, and products be introduced without creating conflict and confusion among customers? Outcome: Over a five-year period, various strategic projects were undertaken: reengineering of global logistics system; creation of new national pricing strategy; expansion of food service market; extension into new channels such as warehouse clubs; and evaluation of multiple brands.

Toy Company – CEO and EVP, Toy Division
Could one of the world’s largest toy companies fully support a new channel of distribution (warehouse clubs) that significantly threatened the "street price" of its bellwether products? How would price, policies, promotion, and product availability be coordinated so as to minimize conflict with the company’s traditional channels? Would a different brand name need to be employed? Outcome: The program for warehouse clubs was developed, tested, and launched in time for the Christmas season. A core group of 75 products with special packaging and pricing was promoted to three warehouse club organizations. Warehouse clubs have become the second largest channel for the company.

Processed Food Company – President, Office Beverage Division
Could the world’s largest coffee company develop a program to deliver at work coffee and soft drinks? What delivery system would provide the greatest profitability? Which competitors currently operating in this market would be most dangerous? Outcome: The project assessed competition, technological trends in dispensing equipment, and the economics of distribution. A program and plan was developed and launched. Within three years the company was the largest factor in this segment.

Canned Food Cooperative – EVP, Operations
How could a food processor use its strength as the world’s largest private label canner to increase profits? Could a new premium-priced brand be developed or acquired? What pricing differential was possible and what would happen to production economies of scale? Outcome: The project identified a small but well-known premium brand. By using this brand for both retail and institutional food markets there would be substantial opportunities to extend new product lines under a premium price. The acquisition was completed and the strategy has been a success.

Dairy Cooperative – CEO and CFO
How did the second largest turkey processor and marketer in the U.S. limit market risk and overcapacity cycles? How would alignment of growers’ contracts, chick placement, delivery systems, and production schedules permit flexibility while maximizing shareholder profits? Outcome: The project developed a new approach for managing contracts and matched it to an early warning planning system that allowed for rapid changes. Volatile swings in pricing were eliminated.

Global Conglomerate – Division CEO, Major Appliances Group
Could the world’s largest maker of major appliances improve its retail presence and profitability? How important were parts, service, and service contract revenue? What could be done to improve service productivity? Outcome: The project discovered that parts and services accounted for 25% of the operating profit of this $3 billion business unit. In addition, the company was unable to take advantage of the service contract business which represented only 8% of its units (as against 65% of Sears’ volume). Finally, the productivity and profitability of residential service calls was frozen because of unrealistic standards and performance measures. Programs and plans were developed for each of these challenges.

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