Achieving Top-line and Bottom-Line Growth in Commodity Market

Plastics: Competitive Positioning, Opportunity Analysis, Strategic Planning

Business Challenge:

Differentiating product in a highly commoditised market along with ample of local / unorganised suppliers, the client not only faced challenge of product pricing, positioning but also struggled to identify new growth areas to expand revenue and improve profitability.

Amongst top 5 suppliers yet struggling to achieve differentiation, profitability in Commodity Segment competing with un-organised Market. Our in-depth assessment of Market, competition resulted in identifying un-tapped market potential, evaluate future growth areas, recommend a brand re-positioning strategy. The result was client revenue grew 32% by volume and achieved 18% higher price realisations for their products within 15 months.

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Business Challenge:

The client wished to evaluate the attractiveness and viability of the project and understand sensitivity of the project on select macro-factors impacting the project.

Our Approach:

We conducted a feasibility study with a dynamic sensitivity analysis with particular focus on

Estimating addressable market size for proposed product-line
Map the competitive scenario – Current mode of operation, Business Models, sales and likely expansion plans of key competition
In-depth Financial assessment of Cost-of-Production, Operating Profits, Project Pay-back and Project’s sensitivity to Government’s policy

Our Recommendation

Re-negotiate pricing for select parts, request for additional parts and assure M-o-Q to justify the investment-to-returns.

Client Results

A clearer picture helped client to decide confidently minimum viable project size and prepare a realistic roadmap of the business.

Plastics