A Business Turnaround During the Recession
A global paint manufacturer engaged The Ripples Group to work on a turnaround strategy for its US business and support its execution. Ripples assisted the client for 3 years implementing the strategy, totally renewing the business. The US business was later sold to a competitor at a price that would have been unthinkable three years prior.
When the housing crisis hit, the world's leading paint manufacturer's US operations suffered a big setback along with the rest of the paint industry. However, as the company was relatively sub-scale in the US, losses in the business mounted faster than the competition.
The paint manufacturer engaged The Ripples Group to design a turnaround strategy and assist in implementation. Ripples facilitated a very productive strategy process with the leadership team. The process involved creating a strategic factbase, with deep focus on competitive dynamics, defining carefully targeted approaches to end-user segments, and collaborating with ad agencies to articulate new brand positioning and marketing campaigns.
We instituted a very fast strategy process working with the senior team and key thought leaders in the organization and within two months proposed a heavy investment strategy to the Board, completely contrary to their expectations of cost cutting. That day they approved to invest over $100M in the brand.
In a deeply recessionary environment, the client made very large investments, re-launching its core paint brand while dramatically cutting non-strategic expenses, improving product quality, and energizing its workforce. Ripples supported the US business for 3 years implementing a far reaching turnaround, re-establishing a strong, viable brand in the US, winning Walmart as a key retail account, and strengthening The Home Depot as an effective channel. The strategy reversed the declines and gained significant market share over two years, leading to a total renewal of the business.
The US business was then sold to a competitor at a price that would have been unthinkable three years prior.