Background
The client, a key player in packaging and packaging machinery, generated hundreds of millions in machinery revenue, driving billions in packaging sales.
They aimed to significantly expand both revenue streams, driven by higher margins and stickiness of machinery sales.
Investors and analysts were keen on the growth strategy, and the client was open to future business model changes while maintaining their current approach.
Approach
Our approach involved a three-stage process, starting with filtering key geographies and segments based on opportunity size, growth potential, and market presence.
We conducted over 60 in-depth interviews with brand representatives, co-manufacturers, co-packers, and machine vendors to understand machinery requirements and market dynamics. This enabled us to develop insights into relevant subsegments, machinery needs, and integrated sales potential. We then analysed the data to identify key opportunity areas and recommended strategies for the client.
Outcome
We identified two growth areas within the client’s core competencies for immediate focus, along with a significant new market entry option to enhance overall packaging sales.