CASE STUDY 2: Strategic B2C Expansion for a B2B FMCG Company

Client: B2B FMCG Company
Industry: Fast-Moving Consumer Goods (FMCG)
Challenge: Strategic Expansion into B2C Market
Services Provided: Strategic Planning, Acquisition Support, Post-Acquisition Integration, Product and Pricing Strategy, E-commerce Enhancement

Background

A well-established B2B FMCG company with a strong reputation and years of experience in the industry made a strategic decision to expand into the B2C market. To accelerate this transition, the company sought to acquire an existing B2C business that aligned with its product offerings and had a solid online presence. Sadana Consulting Services was engaged to lead this strategic initiative, from developing the B2C entry strategy to integrating the acquired business and optimizing its operations.

Objective

To successfully launch the B2C segment of the business through the acquisition of a complementary B2C company, integrate the new business into existing operations, and drive growth through strategic product, pricing, and operational enhancements.

Approach

  1. B2C Entry Strategy Development
    • Market Analysis and Strategic Planning: Conducted a thorough analysis of the B2C market to identify key opportunities and challenges. Collaborated with the client’s leadership team to develop a comprehensive strategy for entering the B2C space, leveraging their existing strengths and reputation.
    • Targeted Acquisition: Identified a smaller B2C business with a good reputation, complementary products, and a strong online presence as the ideal acquisition target. The business was located in another region, necessitating a careful approach to post-acquisition integration.
  2. Acquisition and Integration
    • Acquisition Support: Assisted in the due diligence process, ensuring that the target business was a strong fit for the client’s strategic goals. Supported negotiations and facilitated a smooth acquisition process.
    • Post-Acquisition Integration: Led the integration of the acquired business into the client’s operations, relocating the acquired company to the client’s site. This involved aligning systems, processes, and cultures to create a unified and efficient operation.
  3. Product and Pricing Strategy
    • Product Offering Review: Worked with the management team to review the combined product portfolio, identifying opportunities to streamline offerings and cross-sell products from both businesses.
    • Pricing Strategy: Developed a cohesive pricing strategy that reflected the value of the combined product range, optimized for both B2B and B2C markets.
  4. Operational Restructure
    • Team Restructure: Restructured the customer service, manufacturing, and assembly teams to better serve B2C customers, including the creation of a dedicated B2C team focused on delivering an exceptional customer experience.
    • Manufacturing and Assembly Optimization: Improved manufacturing and assembly processes to support the expanded product range and increased demand from B2C customers.
  5. E-commerce Enhancement
    • Platform Review and Upgrade: Conducted a comprehensive review of the acquired business’s e-commerce platform, identifying areas for improvement. Oversaw the upgrade of the platform to enhance user experience, streamline operations, and support future growth.

Results

  • Successful Market Entry: The strategic acquisition and subsequent integration enabled the client to successfully enter the B2C market, leveraging the acquired business’s strengths and reputation.
  • Product Line Expansion: The integration of complementary products from both companies created a more robust product offering, appealing to a wider customer base.
  • Operational Synergies: The restructuring of teams and optimization of manufacturing and assembly processes led to increased efficiency and improved service delivery.
  • E-commerce Growth: The upgraded e-commerce platform supported a seamless shopping experience, contributing to significant online sales growth.
  • Business Growth: The acquired business doubled in size within the first full year post-acquisition and continued to grow, demonstrating the success of the strategic expansion.

Conclusion

Sadana Consulting Services played a crucial role in helping a well-established B2B FMCG company successfully transition into the B2C market. Through strategic acquisition, effective integration, and targeted operational improvements, the client was able to achieve significant growth and establish a strong foothold in the B2C space. This case exemplifies our ability to guide clients through complex transitions, ensuring long-term success and sustainable growth.