Sector: Consumer Durables
Client: A major brand of TV’s, AC’s and washing machines. Sales had declined by 40% with seven straight quarters of losses.
CEO’s Dream: To reverse the tide of red ink and build a future of sustainable, profitable, growth.
Opportunities Recommended by OppGuru:
Focus on TV and Convergence Products: OppGuru recommended that the client focus on its traditional strength – television – but extend that focus into modern convergence products: smartphones, tablets and smart TV’s. By capturing a much bigger share of “eyes on screens,” the client can uncover and opportunity for sustained, profitable, growth.
Adapt “Where” Positioning: the client couldn’t easily compete on product features against its MNC competitors, i.e. “what” positioning. OppGuru recommended that the client instead think from the customers’ point of view and focus on where, how and when they use products. By designing unique new products specifically for use at home, in the office or on the go, the client could discover a distinctive new positioning that will lead to sustained, profitable, growth.
Build the Brand Back: The client’s biggest asset is its brand, which is well settled in the mind and heart of consumers. The client has unsettled its brand by removing its well-known mascot and by stopping all advertising for two years. Yet the brand and mascot lived on in the minds and heart of consumers. OppGuru advised the client to recover its brand by bringing back its famed mascot, a strategy that should lead to years of sustained, profitable, growth.
Actions Taken: The client accepted and implemented the OpenMind recommendations.
The OppGuru Advantage
Industry: the consumer durables industry was projected to grow at a CAGR of 10 to 12% over the next five years.
Client: the client is on track to grow at over 12 to 15% CAGR for the same period following the execution of OppGuru recommendations.