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Case Study

Revamped supply chain doubles consumer product profitability

One of our consumer products clients asked us to help to restore profitability to a failing product line. Bain conducted a hunt for profitability—analyzing the competition, value chain and manufacturing process. After implementing our recommended changes to its supply chain, the business unit's profit margins more than doubled.

  • min read

At a Glance

  • 3.5% EBIT margin increase

The Full Story

The Situation

TastyCo* held the second largest share of the U.S. market of Tummy Ticklers. This had historically not been an attractive category for TastyCo, though it was profitable for competitors.

Sales of Tummy Ticklers had been declining significantly for eight years and profitability was scattered and marginal. The company predicted a continued decline in product profitability.

TastyCo asked Bain to help turn this product into a profitable one.

Our Approach

Bain analyzed the competition, value chain and manufacturing process to establish where value could be created.

Our Recommendations

In the short term, Bain recommended that TastyCo change its approach to the refiner, additives and manufacturing steps of Tummy Ticklers production.

The Results

In the short term, Bain recommended that TastyCo change its approach to the refiner, additives and manufacturing steps of Tummy Ticklers production.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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