The managing director of a major European fashion brand died unexpectedly. The interim manager took over overall responsibility for sales and marketing with 10 direct reports in Europe. The European group is part of a larger international group of companies.
The client holds a market-leading position in Europe in the segment of promotional textiles and in the corporate wear environment. With around 5,000 employees and 2 brands, it generates sales of more than 200 million euros. Despite declining sales, little target group-oriented marketing and a product range that increasingly fails to meet the demands of the market, the company is still highly profitable.
5-year strategy for realignment and digitalization
The interim manager was tasked with realigning the company with a 5-year strategy and driving forward digitalization. The project was divided into 3 phases over a period of around 18 months. In terms of methodology, the interim manager used elements of the "Blue Ocean Strategy" (Insead) and "reverse engineering".
The interim manager first obtained a comprehensive picture. In doing so, he sought the opinions of both the company and its trading partners. He also took into account the findings from a qualified market research study. From these findings, the interim manager derived the basis for a 5-year strategy. It formulates the ambitious plan to achieve a dominant market position. An aspiration that the interim manager was ultimately able to convince all team leaders of.
Clear focus on more market-oriented products
The next step was to use a strategic decision-making cascade to determine which products the company wanted to use to achieve its objectives in which markets and channels. A clear focus on these products was a key success factor in the implementation phase. Determining which market segments the company did not want to enter was just as important for achieving the objectives.
Profit-loss planning for the first 2 years of the planning horizon
Measures, milestones, key performance indicators (KPIs) and deadlines were recorded in detail in a playbook developed jointly with the teams. In terms of methodology, the teams used "reverse engineering", starting from the last year of the planning period to the present day.
The interim manager worked with the teams to develop a profit-loss plan for the planning horizon. The first 2 years corresponded to the requirements of the budget policy in terms of the level of detail. The development or reduction of skills and resources was also taken into account.
New products introduced - sales and marketing digitally repositioned
The playbook was implemented on the basis of the approved annual budget. For the first year, this included:
- The development of new product ranges in order to better meet the demands of changing consumer awareness (sustainability/haptics), technical requirements of textile finishers (digital printing) and current fashion trends (cut and colors) than the competition.
- The sales organization was adapted to the changed conditions in the sales channels (eCommerce, direct customers, wholesale) and responsibilities were reorganized.
- The product design and marketing departments, which previously operated with little integration, were merged into a product management structure organized by product group, which assumed responsibility for the market-driven development and marketing of its product ranges.
- The digital marketing division was created from scratch and, in addition to the digital marketing of all product ranges, took over the technical implementation of eCommerce requirements.
Company grows faster than the market in its first year
In the first year of the planning horizon, the company exceeded the key performance criteria for the shareholders in all cases and grew faster than the market. The changeover in sales went largely according to plan. The increased focus led to the expected sales growth in the new channels and regions.
A new product family with comprehensible technical advantages, outstanding haptics and a trendy shape and color scheme was developed to market maturity. With a go-to-market strategy planned in detail, the product was launched a year later. It is now regarded as the company's best and most successful product launch.
Laying the foundations for expanding eCommerce and brand awareness
The digital marketing division was largely established by the end of the mandate. The basis for the further expansion of the eCommerce business and the further development of brand awareness, particularly among younger target groups, has been created. The centralization of all functional areas in sales and marketing at one location improved communication, time-to-market and success.
The team now has a vision and thus an overarching orientation and mission for the coming years. In particular, the company has the tools it needs to continue developing its success story independently. In addition, a methodology has been introduced to react correctly to deviations without jeopardizing the set goals.
The ability to deliver products will be very important for the further development of the company. The investment in a better demand management tool (ODM) is an important step: however, the project has not yet been completed.
