A Packaging Company seeks only profitable growth.

If the answers aren’t clearly visible, then look between the lines.

A mature industry sector doesn’t necessarily mean there aren’t profitable growth opportunities. Deep segmentation uncovers opportunities within sub-segments. The devil is always in the detail.

1. Client Brief

The Need – ‘We have a comparatively low share of a large, growing & attractive market segment across 4 business units in Australasia. How & where can we profitably double our share of this market segment to bring it in line with our performance within other market segments?’

The Context – A global player in a highly competitive multi-billion dollar mature Australasian packaging sector, the client was seeking profitable business growth within a market sector containing more than 40 retail and industrial sub segments, across more than 20 unique product types manufactured within 4 different business units.

2. Approach

  • Interviews & workshops to define competitive imperatives – value based prioritization
  • Granular segmentation analysis across products, markets, customers & competitors
  • Key customer identification & engagement to understand issues, needs & commercial drivers, build relationships, capture insights & innovation ideas
  • Competitive positioning & relative advantage of each player & product offer
  • Size, composition, profitability & opportunity in each sub-segment
  • Strategic fit & attractiveness of customers & end use segments moving forward
  • Critical success factors in supplying each segment
  • Prioritized growth opportunities – horizon 1, 2 and 3

3. Findings & Recommendations

  • Total of 36 incremental opportunities identified & signed off
  • 22 opportunities within existing capabilities & current competitive advantage, plus market penetration & subtle innovation – across horizon 1 & 2
  • 14 opportunities representing new capabilities & markets, major innovation & M&A – across horizon 2 & 3
  • 3 year growth target agreed – to increase market share by 10%

4. Results

  • Year 1 revenue target captured – plus 30% of the year 2 target captured in year 1
  • Balance of year 2 revenue target captured in year 2 – market share growth at 6%
  • 35% of new capability opportunities taken through to business case & sign off for investment & execution