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Executive Insights

Volume XIX, Issue 36 | June 7, 2017 | By: L.E.K. Consulting How value drivers link to value creation Aligning management responsibility for value drivers Value driver matrix Value driver map for petroleum marketing Value driver sensitivities — petroleum marketing Key value driver matrix — petroleum marketing

While maximizing shareholder value is an important corporate objective, it is not specific and accountable enough for operating management, who must also know which factors most influence value and which factors can be most easily affected. This Executive Insights presents an approach to increasing performance that will forge stronger links between operating performance measures and shareholder value creation.

Volume XIX, Issue 34 | June 1, 2017 | By: L.E.K. Consulting Intensive strategy analysis: A three-session approach Strategic programming spurs strategic execution

Successful strategic planning is not a mysterious process available to an exclusive group of top-performing companies. Value-creating strategies are the result of executive commitment, hard work and a well-defined approach. This Executive Insights illustrates some practical techniques for managing the development and execution of business strategies.

Volume XIX, Issue 27 | May 8, 2017 | By: Manny Picciola, Rob Wilson, Maria Steingoltz Rising food and labor costs Retail prepared foods pose a growing threat to foodservice operators

For the past decade, foodservice sales have been on a tear, outpacing those of the retail sector. In fact, in 2015, foodservice revenues surpassed retail revenues for the first time, as more and more consumers, emerging from a painful recession, opted to dine out with greater frequency. But foot traffic has begun to slow, stabilizing at or below 1% growth. As a result, foodservice operators will need to look elsewhere in order to build revenue. In this Executive Insights, we discuss findings from the 2017 L.E.K. Consulting U.S. Foodservice Operators Study.

Volume XIX, Issue 16 | March 2, 2017 | By: Chris Randall, Rob Wilson Selling, general and administrative expenses as a % of net sales (2015) State-level minimum wage (2016, 2020) Retailers’ minimum-wage increases Grocery retailer sales per SKU (2013)

The grocery and broader retail industry is at a turning point. In recent years, retailers and grocers have seen rapid evolution, thanks to trends such as consolidation, changing customer preferences and competition from disruptive innovators, chief among them Amazon. Meanwhile, margins — always notoriously thin — have come under stress from rising labor costs. This Executive Insights examines the factors contributing to rising labor costs and how grocers and retailers can respond.

Volume XIX, Issue 14 | February 27, 2017 | By: Jonathan Simmons Real personal disposable income growth (2010 – 20F) UK economic cycle (1980-2014) Recession amplitude and duration by sector (1990 vs. 2008)

The economic implications of Brexit are far from clear. For the retail and consumer sector, further uncertainty will expose the vulnerable. In this Executive Insights, Jonathan Simmons sets out eight key actions that companies and investors should take in order to build business resilience.

Volume XIX, Issue 10 | February 7, 2017 | By: Maria Steingoltz, Robert Haslehurst Indicators of fads Fad vs. durable trend characteristics Potential solutions to transform a fad into a trend or generate sustainable revenue from a fad product with limited staying power

Every year, a handful of consumer products become runaway hits. Pet Rocks, Beanie Babies, the Atkins Diet, inline skates and paintball arenas are good examples of fads, whereas Lego, yoga and natural shampoos became part of an established and consistently growing market. This Executive Insights takes a deeper look at fads versus trends, which is crucial to investment strategy and revenue projection across industries, from technology to toys to consumer services.

Volume XIX, Issue 9 | February 6, 2017 | By: Stuart Jackson

Boards of directors play two roles. They must protect value by helping companies avoid unnecessary risks, and they must build value by ensuring that the companies change quickly enough to address emerging competitive threats, evolving customer preferences and disruptive technologies. In this Executive Insights, L.E.K. Consulting discusses four ways boards can become better challengers and champions of change.

Analysis 1 | January 25, 2017 | By: Alex Evans, Chris Randall Three categories of consumables Consumables engagement by category and segment (2016) Average spend per customer* in the past month (2016) Share of consumer spend by channel and category Share of foodspend and beverage consumer spend by channel and customer type Price, convenience inform channel choices Channel drivers by age Likelihood to purchase a health & wellness product subscription Willingness to purchase private-label brands, by product segment Overall: Perspectives on private label, by category

The 2016 Health & Wellness Study examines consumer spending preferences for nutritional supplements, personal care and healthy grocery products among Millennials, Gen X and Boomers. The study looks at category engagement, drivers of channel selection and, the potential for subscription services, as well as the success factors for private-label products.

Volume XIX, Issue 6 | January 25, 2017 | By: Alex Evans, Robert Haslehurst OTT TV services launched in the U.S., by genre Third-party recommendation engine vendors — revenues in North America WWE Network distribution methods

The modern media industry has excelled at acquiring loyal consumers by enabling each one to create a custom experience out of a mass offering. While the media industry is at the forefront of this shift, the core strategic tenets are relevant to any consumer business. This Executive Insights examines three strategies that retailers and consumer brands can adapt from the media industry to gain critical competitive advantages.

Volume XVIII, Issue 49 | December 22, 2016 | By: Manas Tamotia, Maria Steingoltz Consumer foodservice market value in selected Southeast Asian countries (2005-15) Consumer foodservice market value by outlet type in selected Southeast Asian countries (2015)

Consumer expenditure at foodservice outlets has grown by 8% annually in the six large Southeast Asian countries over the past decade. Yet the foodservice industry suffers from insufficient coverage by suppliers, distributors and retailers alike. This Executive Insights examines the rise of new models emerging across the region for grocery retailers to capture a greater share of foodservice expenditure.

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