What challenge(s) do our clients face?
Building a sales strategy is a challenging task requiring a careful balance between delivering what each customer needs and controlling the costs required to fulfill those needs.
In order to overcome this challenge, a company must deeply understand the dynamics of its market, the specific needs of each kind of customer and the internal capabilities it has to serve the market in an efficient way. All are key variables that should be aligned in order to create a high-performance sales model.
And whilst many organizations may have found an effective sales model at one time, it is unfortunately no guarantee for the future. With changing market trends and evolving customer needs, many factors can impact a company’s sales strategy, making them key turning points for undertaking a Go-to-Market review:
- New market dynamics that impacts consumer habits and customer needs in terms of service level etc.
- Entry of new competitors or substitutes
- Poor performance in specific categories, regions and/or sales channels
- Changes in regulatory or legal environment
- New trends such as digitalization or new categories.
- Lack of understanding of the market dynamics in terms of categories, regional distribution and channels
- Limited knowledge of the customer needs in terms of services, portfolio, commercial conditions and service level
- Failure to adequately serve regional variations in a market
- Unclear roles & responsibilities along the value chain
When it comes to overcoming these issues, a Go-to-Market project is the opportunity to build a successful commercial strategy. Its objective is to establish a business model that serves the market in an efficient, effective and profitable way that serves both your company’s strategy and the needs of its clients.
How do we help?
We support our clients in the design or revision of their Go-to-Market strategy, either revamping your whole commercial strategy or focusing on specific channels or categories as required.
Our methodology provides a complete and structured way of guaranteeing that the GTM strategy meets the key needs of the sales strategy. It includes:
- A holistic view of the market, taking into consideration its dynamics in terms of categories, regions and sales channels and how our clients can differentiate their commercial approach inside the competitive environment.
- A unique market segmentation designed to help with defining the strategic objectives for each group of customers that will be served, alongside the company’s value proposition for each of them
- A tailored commercial model for each market segment, taking business decisions such as channel mix, portfolio focus, commercial structure and service level to meet each segment’s needs.
Given that the redesign of a GTM is a transformational experience that impacts the whole company, we ensure the full engagement of all areas and not only the commercial team. By mapping impacts, needs and opportunities from all areas early on and ensuring ongoing communication, cross-leadership touchpoints and multifunctional workshops, we ensure that the project meets all stakeholders’ objectives and will conclude with a successful implementation.
One learning from our track record of 400+ successful projects and implementations across the world, is that each company has a unique combination of market dynamics, product portfolio and channel landscape. Therefore, understanding the specific context a company faces when designing its GTM is the key factor in building a differentiated sales strategy for the long term.
What are the benefits?
Our clients can expect several benefits when structuring their GTM , including some of the below examples:
- Increased revenue and sales volume – through increased coverage and penetration of products in the market
- Increased profitability – through reduced marketing and sales costs
- Increased delivery model efficiency– through lower friction service model’s adherence to market needs along the entire value chain
- Increased alignment with customer needs – through improved understanding of client’s profile, their requirements and the value your products have for them
- Boosted brand image – through trade actions, merchandising, loyalty programs etc.
- Improved product distribution – through increased product availability and an optimized distribution network
- Increased market share – through innovation, stronger relationship with clients, M&A etc. bringing more relevance in the market
- Improved marketing mix control – through better use of resources for each product, channel, communication plan etc.
- Increased service level – through ensuring that it is appropriate to the customer segment and that the internal org. structure is designed to deliver it.
How does it work?
For our team, each GTM project brings a brand new challenge and enthusiasm for solving a new problem. You can rely on our experienced professionals to bring their knowledge, benchmarks and best practices from other industries to your specific needs, whilst always understanding and respecting the reality of your market to build implementable strategies.
To address the challenges a company faces when building a GTM, our methodology usually includes the following 6 phases:
Along this journey, our way of working involves your professionals at each step, considering two main objectives: (i) to respect and leverage your deep industry knowledge for the creation of the most suitable recommendation, and (ii) to guarantee a natural transfer of knowledge and capabilities throughout the project so that your professionals are able to carry on the GTM with full autonomy at the end of the project.
A leading global Consumer Beauty company with high performance in Direct Modern Trade channels sought to improve its performance in Indirect Traditional Trade. While the specific characteristics of each local market were nuanced and different, the client sought to roll out best management practices for its wholesale partners globally.
Integration supported the client in developing a Distributor Management methodology, including frameworks for distributor assessment, selection and management. Integration oversaw the practical application of the methodology in 12 countries (ranging from Pakistan to Peru), running training sessions and adapting guidance appropriately to local needs.
As a consequence of the successful implementation, distributor sales have outpaced growth of those in modern trade by 5 percentage points, while simultaneously reducing days of inventory by an average of 16%.
A leading US energy drinks company had declining market share due to aggressive market competition. Despite being well-established in terms of both geographical footprint and brand image, they asked for Integration’s help to identify revenue opportunities and guarantee sustainable organic growth via a new Go-to-Market strategy.
We developed a three phase approach: (1) Firstly, we analysed the market, especially the competition, and visited more than fifty distributors to identify revenue opportunities. (2) This formed the basis of a channel segmentation, designed to manage the right balance between going direct and indirect in each region, considering both current (convenience stores, supermarkets, etc) and new (catering, military bases, airport, etc) channels for the company. (3) We then quantified and prioritized the opportunities in terms of numeric distribution, volume per outlet and market share, for each region and channel.
Together with the client’s team we agreed on a new Go-to-Market strategy for the US with the appropriate service level per segment, reshaping the distributor network and the sales & trade marketing department in order to deliver the new strategy efficiently. Due to an increase in sales of more than 30%, the client was able to stabilize and protect their leading market share.
A global cement producer had experienced a general market downturn over a number of years and was having difficulty in reorganizing its commercial operations to prepare the company for the future. This was leading to loss of market share, inefficiency in commercial service, clients with profitability below average and a drop in the service level provided to its customers.
Alongside the client, Integration led a project to restructure their commercial strategy and segment the market in order to identify the main performance gaps. This involved structuring workstreams to take action for solving the profitability problem in some clients, designing a menu of service models to meet each market segment’s reality and restructuring the sales area.
The project enabled the company to have a clear map of the main regional opportunities along with the capability to capture them through a new sales area and service model. This generated an improvement of 20% in terms of distribution and ~30% in terms of revenue.
OUR INDUSTRY EXPERIENCE
Our GTM methodology is one of our most applied solutions and over the years Integration has delivered more than 400 projects for clients in industries ranging from Consumer Goods (e.g. Personal Care and Food and Beverages), to Pharmaceuticals and Industrial products (e.g. Construction materials, Chemicals and Fertilizers). This experience is worldwide, encompassing geographies such as Brazil, Canada, USA, Russia, Mexico, Argentina, Italy, Denmark, Central America and the Caribbean amongst others. We have supported international companies with GTM projects that can be regional as well as national.