Case 1: Manufacturer of Consumer Products

The Challenge:
“We have a good product and reputation, but our sales have been flat for the last six years.”

The Strategy:
The Fifth Element team worked side-by-side with the client to diagnose potential causes of the sales stagnation. Fifth Element used research, interviews and on-site assessments to deeply understand the competitive market, the customer base, marketplace trends and the company’s internal capabilities.

The team learned that though the client’s products were viewed favorably for their quality, what their customers wanted was innovation—products that stood out as unique and cutting edge.The team also discovered that the client already had significant technical capabilities that could be refocused to create new products that had never been seen in the marketplace.

With a new product focus, Fifth Element helped the company re-brand itself from commodity product provider to innovative industry leader through new marketing and public relations efforts. The sales force received intensive training and several employees became expert presenters on industry trends and innovation. Fifth Element worked side-by-side the company’s sales folks in the field, making sales calls and evolving the sales methodology from “transactional” to “consultative.” At the same time, the company developed exclusive formulas, trademarks and other intellectual property, which enabled them to license some of the new technology to its strategic partners. Customer Service was a critical part of the effort and the company implemented new software to help ensure the retention of existing customers and win over new ones.

The Results:
The company became a trusted advisor to most its clients, offering innovative products that commanded higher margin and sell-through in retail stores. The company gained significant market share and margin while improving client retention. Sales increased from $20 million to $30 million and earnings rose from $200,000 to $4.5 million in a three-year period.

Postscript:
In 2007, Fifth Element Associates was pleased to facilitate the sale of the company for $28 million.

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