Avalon helps glass company with performance improvement
Management consultancy Avalon has helped a leading glass producer in India increase its production volume, revenue and margins over a period of three years. The glass company turned to Avalon for help following challenges to its market share from a major competitor in India.
Avalon’s client – who the firm chooses to keep anonymous – currently controls more than 50% of the market share of glass production in India, although its trade business was being threatened. Repercussions from the increased competition were being felt throughout the company, affecting performance.
The scenario led the glass producer to fall short of its production targets for the financial year of 2015, brought about by a 5% dip in overall production volume from the four previous years. Lacking any assurance of stability in the near future, the firm brought Avalon Consulting on board to help consolidate its dominant market position.
Avalon works with a number of clients across the Indian market, using a comprehensive strategy to boost sales and production. The firm’s systematic interventions involve identifying areas of potential improvement, followed by targeted efforts and prioritisation of action, driven by a focus on maximum returns from minimal interventions.
Prominent examples exist of Avalon leading clients to success, including the above case of a leading glass company. Given that the market share of dealers was being threatened, Avalon designed a Dealer Relationship Management (DRM) programme for the company, which categorised dealers based on their performance and relationship with the company.
Just over 13% of the company’s total pool of dealers were split into categories, following which Avalon devised targeted intiaitives for each segment of dealers. ‘Initiatives included improving services levels, conducting retailer meets, providing marketing collaterals and increasing visits,’ among others, states Avalon in an impact paper that details the project.
Most of the work in implementing these initiatives fell on the sales team, which was supported by Avalon at each stage. Designing templates, training, weekly reviews, and performance assessments of the dealers were all part of the implementation process. Once the key areas of intervention were identified with the initial sample of dealers, similar interventions were made for the entire network of dealers.
By the end of two years of Avalon’s involvement, the glass company had achieved 105% of its production target, 115% of its dealer volume targets, 105% of its revenue targets and 105% of its target margins.
