A 25% sales boost for a leading consumer product.
A market leader in Parmigiano Reggiano cheese, owned by a farmer’s cooperative and produced to strict quality standards, undertook a strategic benchmarking initiative with PIMS to quantify its growth potential. PIMS was then asked to help implement the changes needed to achieve this potential.
Parmigiano Reggiano is not a privately owned brand but a geographically and technically controlled appellation, adding complexity to the task. The goal was to improve the company’s offer and interaction with wholesalers and retailers to grow market share.
PIMS identified that both the quality and quantity of sales interactions needed improvement. Detailed analysis of sales force activities revealed that customer visits per salesman needed to be doubled, increasing time allocation in the field from 44% to 80%. This required a more efficient sales support system and streamlined order handling process.
Key customers were interviewed to establish their needs in terms of product offer, service requirements, and delivery. This led to a segmentation of actual and potential clients. By clustering groups of customers with similar needs, the company’s market offer could be tailored to specific segments. Promotional support was customized, and budgets and reporting scorecards were implemented to measure progress. Area managers and salesmen were trained to take a holistic view of customer needs, focusing on quality, service, and innovation rather than just price and general customer relations. Salesmen were educated on product knowledge, communication skills, time management, and leadership.
In-depth analysis also identified the potential for a premium brand of Parmigiano Reggiano. This premium brand would shift consumer attention from price to quality, building the trust necessary for product innovation beyond traditional variations in size, grating, and wrapping materials. This would improve and widen the effectiveness of the company’s innovation process.
Not all changes are in place yet, but even with the changes made to date, the company has increased sales by 25%. The management and PIMS project team continue to work together to achieve further progress.
