Page 13 - Case Study Annual 2018
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prohibitive for small to medium size retailers
to buy directly from CIMERWA, thereby
pushing volumes to distributors. In order
for CIMERWA to be in a position to better
manage sales volumes, customer loyalty
programmes, market pricing and service and
support levels, it needed to migrate from
the distributor model to that of a delivered
service. The transition plan took place over
three months and was concluded by the end
of April 2017.
The challenge
The CIMERWA project team needed to
develop an innovative route-to-market
strategy that would achieve the following
objectives:
• Increase sales volumes from 10,000 tons
per month to 35,000.
• Ensure product availability in Kigali at a
lower cost. was implemented and a new corporate
• Reduce the dependency on the distributor transporter was developed. New trucks, fit
model, thereby breaking their stranglehold for purpose, were brought in. The company
on the market. developed the local transporter base and
• Provide customers with a direct delivery insisted on adherence to payloads. A new
service with product available in a matter of dedicated fleet with lower emissions was
hours, not days. introduced, and cycles were increased from
• Grow the customer base significantly from eight loads per truck per month to 20 loads.
50 customers to 500. The virtual warehouse concept was also
introduced.
The solution Sales and marketing alignment meant
CIMERWA adjusted its business alignment, rebranding, product awareness promotions
resourced up and implemented a change in and marketing campaigns. The brand was
operating model. It increased sales reps from revitalised. The sales process was simplified
two to six, effected an internal sales coverage
from 7am until 8pm, offered and managed The outcome
credit, and reduced factory turnaround time. The successful implementation of the
To redefine the distributor role, CIMERWA: transition plan contributed significantly
• Let distributor agreements run out. to improvements in CIMERWA’s strategic
• Transitioned the biggest distributor to a positioning in the Great Lakes cement
transporter. industry, resulting in:
• Now uses distributors that support the • Increased sales volumes from 10,000 tons
strategy. per month to 35,000.
• Changed the rebate table to discourage • Ensured product availability in Kigali at a
large buying cooperatives. lower cost.
When it came to pricing, there was a • Reduced the dependency on the distributor
radical restructure to rebate table. The model, thereby breaking their stranglehold
company discouraged cooperative buying on the market.
schemes and made it possible for the small • Provided customers with a direct delivery
retailer to participate. Regional pricing is on a service with product available in a matter of
delivered basis. hours, not days.
Further, a Transport Management System • Grew the customer base from 50 to 500. •
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