Strategy
Expanding a global manufacturing line into regional markets for impact.
At A Glance
Our client enlisted United Alliance (UA) to devise and enable a path for profitable growth. UA designed and executed commercial, financial, and technical solutions that delivered benefits, improved gross margins, enabled new revenue, and enhanced the customer experience.
The Situation:
United Alliance provided consultation and operational support for its client to maintain its high growth trajectory. UA focused on new product offerings, and prioritized transitioning from a globally uniform product line manufactured in China, to domestically produced products in the US and UK that would better exceed customer expectations, drive growth, improve margins, and enhance supply chain resilience.
The Ask
The Client lacked experience in expanding its supply chain beyond China and tailoring products for the US and UK markets. They needed to develop the capability to manage a more diverse supply chain with multiple regional partners throughout the world. The Client asked UA to develop a systematic approach to prioritizing products, establishing local partnerships, negotiating terms, launching products with cross-functional teams, and tracking their value.
The Solution:
UA orchestrated the Client's inaugural product launch outside of China, navigating uncertainties stemming from the unfamiliar territory. Recognizing the need for a streamlined approach, we spearheaded establishing a repeatable process for efficient and cost-effective regional product launches. This involved defining product requirements, cultivating supplier relationships, and fostering cross-functional collaboration, and designing launch plans to ensure repeatability. Our comprehensive solution encompassed market research analysis, cost modeling, product development oversight, and seamless execution of launch events, including customer experience management. This process now serves as a blueprint for future market releases.
Real Impact
Gross Margin (GM) Improvement
The Client achieved $5M in cost savings, reflecting a 30% cost decrease per pack sold, as well as additional logistics cost savings from freight negotiations.
Annual Revenue Increase:
Revenue increased by 20% from 2022 to 2023, adding $45M to the top line, while also enabling a further 40% YoY increase in new channels like retail, B2B, and Amazon.
Better Customer Experience:
Designed product to market-specific expectations and standards, improved sustainability of the eco-branded product, and established a repeatable product launch process for flawless execution that will continue to delight the customer.