How to improve margins?
a. Gross profit below 25% level
b. Gross profit margin falling over quarters and inconsistent
c. Frequent discounting of sales to achieve volumes
d. SKU size in excess of norm – too many products
2. Key focus area covered under diagnosis by EMC experts:
a. Sourcing issue and price hedging b. SKU size in excess of norm – too many products
c. Production or buying efficiency
d. Me too or followers strategy in a saturated market
3. Key solution group:
a. Redefine and reengineer product offering
b. Key account management approach, customer segmentation
c. Brand building and innovation rather than box mover
d. Find the core and sustainable reason to differentiate the offering
4. Outcome
a. Increase in gross margin by 3% to 10% over time compared to benchmarks
b. Sustainability of gross profit margin