Situation: A leading building products company was underperforming in serving its two-step distributors. The company had lost five share points over a three-year period.
Approach: Principia helped define channel needs within the decking category, by conducting 500 interviews with the company’s distributors and trade customers. Points of need and specific areas of improvement were identified. An improved service point model was developed to better serve the channel.
Outcome: Principia recommended expanding value-added services to the portfolio and reorganizing resources to more effectively serve two-step distributors in multiple regions in the U.S. The client gained a better understanding of serving the market, including demand patterns and customer requirements. Ultimately, the client recovered three share points and improved EBIT by 10% within 18 months in this important market channel.