Client: World’s largest producer of non-metallic tubes, manufacturing in eleven countries, sales of $400 million. Growth had slowed and profits were minimal.
CEO’s Dream: To be a highly profitable $500 million company within 18 months, with a $1 billion market cap.
Opportunities Recommended by OppGuru:
Uncover Caps and Closures – OppGuru recommended that the client focus management resources on the fast-growing market for caps and closures, projected to reach $46 billion within 3 years. Through this recommendation, Mr. Rothman helped the client to uncover an opportunity that it had missed.
Recognize and Leverage Core Benefits – OppGuru recommended that the client recognize that it need not be a commodity manufacturer – that its packaging delivers valuable benefits all along the value chain, to manufacturers, customers and consumers, by ensuring that products such as toothpaste, medicines and skin creams are consistently safe and long lasting.
Become a Solutions Provider – OppGuru recommended that the client rebrand as a “Concept to Tube Solutions Provider” and offer services to all manufacturers using tubes to create safe, secure products all the way from concept stage. By massively increasing its share of the value chain, the client was able to attract many new customers, improve margins, and eliminate its reliance on large multinational customers.
Actions Taken: The client accepted and implemented the OppGuru recommendations.
The OppGuru Advantage
Industry: the packaging industry was projected to grow at a CAGR of 5 to 7% over the next five years.
Client: the client is on track to grow at over 20% CAGR for the same period following the execution of OppGuru recommendations.