Business Project Profitability Examination

Background

The company markets and distributes cosmetics, toiletries and food products in Israel and Europe. The company has the exclusive license to distribute products of an international consumer products corporation.

After successful execution of operational excellence project by Tefen, the company contacted Tefen in order to identify opportunities for growth based on the company's existing assets.

Project Goals

Tefen was asked to map and review the existing assets and capabilities of the customer, to identify business opportunities mainly to achieve an increase in income and to do profound examination, prioritization and construction of innovative business project as part of an attempt to find growth opportunities.

Challenges

• Identifying peripheral business opportunities which will integrate correctly with the main activity of the company
• Review and analysis of future markets which will be relevant to the enterprise
• Build a weighted profitability model containing expected income and the mechanism costs (construction and operation) required in every potential opportunity to select a new activity with long-term ROI
• Identification and segmentation of potential customers

How Tefen Helped

• Identification of potential opportunities:
  • Performing data analysis and interviews with company executives and market leaders
  • Performing Benchmark research and mapping of future competition examined channels
  • Identification and characterization of potential customers and their needs
• Capabilities and assets mapping:
• Analysis of existing activities, Gap analysis
• Examining the potential and suitability of each opportunity to the company's business strategy
• Quantification and prioritization of opportunities:
• Building P&L and business plan required for every opportunity
• Examination of the value and ease of implementation of each alternative
• Development of the selected opportunity

Results

Providing integrated recommendation:

• Financial analysis of every opportunity including expected income, profitability, required investment and competitive advantage
• Analysis of the ease of implementation and adaptation of business opportunity to the company's activities and vision
• List of potential customers divided into segments for the new opportunity
• Detailed implementation plan for the selected opportunity – the capabilities, tools and processes required to develop