An organisation-wide transformation from manufacturing to marketing
case study
April 2018
An organisation-wide transformation from manufacturing to marketing
Exotic Mushrooms’ strategic repositioning journey with Sapience to become Exotic Biosolutions Pvt. Ltd.
Introduction
Exotic Mushrooms was founded in 1991 as a company producing organically grown mushrooms. With their expertise on phytogenic compounds already established, Exotic saw potential in venturing into the animal health industry and started manufacturing animal feed supplements in 1998. Although the manufacturing was completely in-house, the products were manufactured for and marketed by third parties – leading Indian and global companies in the Indian animal health sector.
As the years progressed, competition in contract manufacturing was growing and profitability was shrinking. Soon, manufacturing alone would no longer keep Exotic thriving. The company was at a crossroads about their future: how should they best use the knowledge gathered from over a quarter century’s worth of experience and R&D efforts to secure their place in a constantly-changing agribusiness industry? How could they increase their market value?
It was time to call in the experts to help, and Sapience was the chosen partner for the task. With an interest in exploring alternatives to conventional methodologies in the agribusiness sector to secure the future of food, Sapience was in the right position to add value to Exotic’s future.
IMPACT
The Challenge
Exotic Mushrooms’ business model was based entirely on their manufacturing capabilities. Moreover, since all products were marketed by third party companies, Exotic’s brand recall was absent. Even their innovative R&D products in the animal welfare industry were marketed and sold by third parties, because of in-house marketing capability constraints.
Sapience and Exotic went through a highly intense strategic planning exercise, identifying manufacturing as Exotic’s key strength – but also acknowledging that to be relevant in the future, Exotic needed to transform from a purely manufacturing company to a marketing company. In the absence of a marketing team, many innovative products developed in-house by Exotic were either unable to see the light of day or only managed to reap suboptimal returns. For instance, the company had invented and marketed a fly control product that had the unique ability to hinder their reproduction, but the marketing efforts to establish the product and the company were limited. It was imperative that Exotic builds in-house marketing capabilities and expands their product lines. Sapience was entrusted with the task of helping Exotic make the transition.
Making change acceptable across the company
Transforming a 26-year old company is daunting, to say the least. Leaving manufacturing as is since it was self-sustaining, Sapience then identified the areas where they could advise Exotic:
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Adding manpower to marketing
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Adding distribution channels
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Focusing on product packaging
Branding the company and making a very conscious effort to reposition Exotic in the minds of their customers. The Sapience team worked relentlessly with Exotic every month, helping them set up all processes, writing protocols for trials and meeting with the leadership to evaluate and realign goals when necessary. Working with ‘Transform while you Perform’ as the motto, Sapience implemented a time-bound programme that has helped Exotic confidently transform into a marketing company..
The primary benefit for us was that Sapience understood our exact problem. Their professional, systematic approach and strategic planning has shown us the path of change, which has permeated into all departments. The message of Exotic’s new face as a marketing company resonates with everybody and the efforts that we have mutually taken has shown results! In one year’s time, our turnovers have increased by 50%.”
Sudhanshu Chousalkar
Partner, Exotic Mushrooms
Director, Exotic Biosolutions Pvt. Ltd.
A new chapter begins
Exotic Mushrooms has now fully evolved into Exotic Biosolutions, with a highly professional in-house marketing team capable of marketing and selling Exotic’s own line of innovative products.
Since Exotic’s partnership with Sapience, the business turnover has seen a 50% increase through marketing alone, with the company hoping to end 2018 with 2 times the growth. Exotic has also successfully launched its line of fly control products and a host of other phytogenic compound-based innovations in the market that are set to positively–and profitably–impact the agribusiness industry.
Seeing the difference Sapience has made to Exotic’s processes and the manner in which the journey of transition has been shaped, the partnership is developing into a more long-term alliance. The leadership team is confident that over the next 4 years, they will create large-scale impact and achieve all their goals.
Result Areas
Strategic Planning & Development
Customer Intimacy
Due Diligience