Setting up 14 new sales channels for a local smokehouse
The owner was stuck in local markets. We introduced his products to 3 deli chains and 11 specialty stores in the voivodeship.
The owner of a smokehouse near Olsztyn produced great cold cuts but sold them only at local markets. The margin was low, and fuel and electricity costs were rising faster than profits. We had to find customers who would pay for quality, not just for a low price per kilogram.
The challenge
In March 2023, the smokehouse based 84% of its sales on three local bazaars. The problem was that customers in these places did not accept price increases of more than 2 PLN per kilogram, even though production costs jumped by 31.4%. The company was earning a net of only 4.2% on turnover. If nothing changed by the end of the year, the owner would have to close the plant or seek a loan to cover current meat invoices.
Our approach
The Market Accelerator team went into the field. For 4 days we drove around the region, checking what was on the shelves in the best delis in Olsztyn and Ostróda. We selected 19 points that fit the premium profile. We knew that the margin counts, so we prepared completely new argumentation for the buyers. We focused on the fact that these cold cuts have a 3-day longer shelf life than mass production, which drastically reduces store losses.
The solution
Instead of asking for a place on the shelf, we started offering a solution to the problem of gaps in the traditional range. We rebuilt delivery logistics so that the driver drove only twice a week (Tuesdays and Thursdays) on a fixed route, which limited transport costs by 17%. We trained the owner in specific sales closing techniques. Without any fluff—he received ready-made scripts for talks with store managers, which we tested together during the first 5 visits to contractors.
Results
Within 7 months, we completely changed the structure of recipients. Specialty stores and delis now generate more than half of the company's revenue, allowing it to escape the price war at markets.
Timeline
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March 2023Pricing audit and inspection visits to 19 competitor stores.
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April 2023Redesign of labels and certification of sample batches for chains.
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May 2023Signing the first agreement with a regional chain for 3 locations.
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July 2023Closing the list of 11 smaller partner stores.
"I was afraid that big stores would eat us with payment terms and requirements. Market Accelerator showed us how to talk to buyers from a position of strength. Now we earn on the margin, not on quantity."