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Improving Customer Satisfaction Whilst Optimizing Costs Through Redesign to Value

Case study Marcolin / LVMH / Thelios

Business Challenges

To ensure the Group concentrate its efforts on what matters most to consumers in terms of value delivered, costs must be reviewed and reallocated according to prioritized product features.

Too often, we see a disconnect between what a company and a consumer would consider as important product features. Carrying out a deep analysis therefore leads to questioning the value and redesigning the product at objective costs. It is also an opportunity to be closer to consumers current and future expectations and related product trade-offs. After having identified several high potential iconic products and mobilized a cross-functional team to participate in the redesign analysis, the Group needed an outside view on its product strategy.

EFESO was chosen because of its proven methodological approach in Redesign to Value with numerous Clients, in particular in the Food & Beverage industry. EFESO’s strong track record working with Clients to align company culture with Client values related to innovation and differentiation, made it an obvious choice.

Approach

Working in tandem, the Client and EFESO developed a multi-brand Value Analysis and Redesign program. Each product group followed the same systematic steps that included redesign and training teams in the methodology over a two-month timeframe.

We started with a kick-off workshop to define the scope of the project and the objectives to be achieved. This was also an opportunity to introduce the Redesign to Value methodology and onboard the cross functional team including all key departments - Marketing, Quality, R&D, Purchasing, Production, Maintenance, etc.

Each functional representative was interviewed to describe their perception of the product in its context and to identify its key features. A second workshop took place to share the list of identified products features, rationalize, and prioritize it.

This list was then submitted to a panel of consumers who in turn established a hierarchy according to their expectations. They also evaluated their level of satisfaction regarding both the product and the products from competitors. The following workshops consisted of allocating costs to features and then comparing the distribution cost to customer expectations.

The team continued its work by identifying the cost improvement levers, the associated gains and risks, the technical feasibility and the resources required to implement these levers. The levers identified (typically a quick win scenario and a development scenario) were reviewed and validated by senior management before their implementation.

The solutions have been co-created between the Client's teams and EFESO throughout the project. The methodology helped establish a common ground, facts, structure and language for challenging decision making (across multiple functions, and between Corporate and Business Unit). After the first successes, the Client is rolling-out the approach in a targeted manner, for BUs or products that need it.

The involvement and commitment of the representatives of each key function and the support of senior management were essential in delivering a qualitative outcome.

The Client

Our Client is an international food group active in over 100 countries with a large and strong brand portfolio in supermarkets and superstores. The Client is constantly looking for innovation and differentiation, while being focused on delivering value to its consumers.

The challenge

To ensure products are aligned to consumer needs, it was necessary to review the product strategy and launch a redesign to value program.

Industry: Food and Beverage
Location: Europe
Project duration: 8 months
Expertise: Portfolio Management / Redesign to Value

Very effective exercise with a strict but necessary methodology that allowed to obtain significant results quickly.

Industrial Director

A project with an educational dimension allowing all participants to understand the composition of an industrial cost price.

Industrial Director

Results

The redesign to value of the products, confirmed by a consumer survey, helped to gain significant savings.

Some of the improvement areas:

Example with one brand:

  • 23 improvement ideas identified, 10 selected for a total of €1.3 M of projected savings (representing 11% annual costs). Half of which are Quick Wins.
  • More than 20 people trained on the methodology.