Turnaround of a PE Backed,
Recycled Paper Greetings was purchased from its founders by a leading private equity firm, and one year later was careening toward covenant default. While highly profitable, the team had not achieved the aggressive growth assumed in the investment thesis. Further, same store sales were declining at the company’s two largest customers, and the pending economic crisis was about to eliminate some of the company’s most profitable boutique customers.
Driving Profitable Growth of a
Large Division at a World Class
The Home Care division at SC Johnson included venerable brands Pledge, Shout, and the newly purchased Windex and Drano brands. Each brand was managed separately with a strategy that focused on its particular category. Overall Division sales were stagnant even though each brand was the #1 or #2 player in its category, and profits were lagging expectations because several new product launches had fallen short of financial goals.
Inspiring Innovation and Classical Marketing at a Family Owned,
Retailers were seizing more and more power in the Office Products category as they consolidated the commercial and retail sectors, largely because manufacturers were not innovating enough, and manufacturers were under-investing in marketing support. Sales and profits had been sluggish in recent years, and the company was on a path to miss its fiscal year financial goals. Family leadership wanted to instill a more consumer driven approach into their company, build stronger brands, and ultimately improve profits.
Stemming Precipitous Declines in the Market Capitalization of an Iconic Brand Facing Disruptive Change
Kodak was losing market share to Fuji largely based on price, and the nascent digital technology was still priced out of reach for most consumers. Due to inroads by Fuji and the looming threat of digital to high margin film, Kodak’s market capitalization had been declining for years even though the company was tremendously profitable and the brand remained an icon.
Revitalizing a Dormant Brand and Driving Sustainable Long Term Growth
The OFF! Brand was the dominant player in the insect repellent category, and profit margins were among the highest at SC Johnson. But growth was stagnant, and consumers were turning to unconventional solutions such as Avon Skin So Soft and Citronella Candles to solve their needs.
Transforming a Culture toward Innovation, Commitment, and Accountability
ETA/Cuisenaire was a respected supplier of manipulatives to text book publishers and P-12 educators. But text book sales were declining and publishers were increasingly filing Chapter 11. Sales and profits had been declining at a compounded annual double-digit rate for five years, and workforce moral was suffering.