INDUSTRY

Energy & Utilities

This company is a Japanese multinational providing commercial optical and lighting solutions. Despite supplying over 7,000 customers, they were making a £1.7 million loss in their commercial division.

Their labour turnover was 33% and the Business Development team was disengaged and unproductive with declining profits and annuities.

The Challenges:

  • Declining margins were being squeezed by 5% per year.
  • Declining annuities due to market forces and price erosion.
  • Brand and service offering not clearly defined.
  • An under-utilised professional services division.
  • Top 20 customers produced £1.8m of the total £8.5m revenue with a low average sale value of £4.5k.

The Avondale Strategy team worked closely with the board to carry out a macro analysis and market sizing exercise to establish market opportunities and trends.

The Solution:

  • The existing client base was leveraged to allow a new target audience to be identified; subsequently the marketing division was re-aligned to provide a new vertical and horizontal value proposition.
  • The existing route to market was challenged along with the skill set within the Business Development teams.
  • Through assessment and training, a new Business Development, Consultancy Service and Service Delivery division was established.
  • This was combined with training of existing personnel to provide world class consultancy services and customer experiences to the new target audience.

The Outcome:

  • The company generated £3m of new revenues from larger corporations and established a £20m pipeline of untapped business.
  • The turnover of staff reduced significantly, resulting in a 60% drop in recruitment costs.
    Margins were maintained and annuity revenue per customer increased by over 800%.

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