Alessa group is one of the pioneers in the household appliances distribution industry in the Kingdom of Saudi Arabia. Founded by Hamad Abdullah Alessa in 1935, Alessa distributes today top international brands such as Hitachi, Gibson, Frigidaire, and Chiq and a diverse product line of appliances, electronics and manufacturing refrigerators, freezers, air conditioners, and air handling units, as well as contracting and installation of personnel and commercial air conditioners and air handling units in the Middle East and Africa markets.
Challenge
Our client was facing a drop in their market share due mainly to the rapid change in market dynamics and consumers’ changing buying behavior, and their internal sales organization structure. Not only was the increasing pace shifting the industry, but the consumer was changing their choice of purchasing and priorities from a product point of view with all new brands and product development in the industry.
Scope of Work
HEED helped Alessa with two main pillars that helped them solve these challenges:
- Restructuring their Sales Organization with modern-trade accounts to become customer-centric: we created POD based structure with different roles (merchandising, sales executives, account planning, pricing, brand management, etc.) to serve their target accounts.
- Uplifting Brand and Portfolio Strategy: conducting a full market dynamics study from the client’s customers' perspective led to two important findings: our client’s customers were growing toward other channels of purchasing such as e-commerce, and the product preferences were tending toward items outside our client’s portfolio. The change in that area was i) empowering the e-commerce platform, and ii) expanding their product portfolio to acquire small domestic appliances and TV screens.
Impact on Revenue
Our client viewed an increase in market share with penetration to new markets, especially with the newly acquired product line and brands (Frigidaire and Chiq). They have smoothly cut losses with low-margin accounts and expanded with new modern-trade accounts. In addition to their 320% increase in sales through amazon and noon channels.
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