Resist the Margin Squeeze

Striking the right balance between operating costs and pricing can transform shrinking margins into sustainable, long-term profits. Resist the squeeze and lay the groundwork for future success today with our range of integrated solutions that target the primary factors for margin growth.

Thrive in challenging times

Today's retailers and consumer products companies face a difficult growth market. Rising commodity prices, high volatility and price-sensitive consumers are all squeezing margins at an unprecedented rate. But growth, profitability and increased shareholder value are all possible. At Capgemini, we draw on our proven strategies to maximise your margins quickly.

The path to maximising margins

We help you achieve margin growth through four key strategies:
  • Extend operating models: we review existing models to challenge their status quo.
  • Collaborate with partners: we advise on how to create winning partnerships that reduce costs and improve on-shelf sales.
  • Seek high-growth markets: we help you weigh potential against risk involved.
  • Prioritise key consumer groups: we implement cost-effective customer segmentation frames based on customer purchasing behavior and preferences.
Our range of solutions includes:

Supporting margin growth, one client at a time

We have worked with clients in the consumer products and retail industry to maximize their margins. Examples include:
  • CAPSA, a leading milk producer in Spain: we helped support the launch and development of its new business unit dedicated to the foodservice industry with a business plan focused on:
    • Building a specific distributors network with national coverage
    • Developing a targeted product portfolio and promotional policy
After only its second year of operation, the new business unit achieved:
  • Sales of €100m in one year, representing 14% of the company’s total revenue
  • An 11% share in its foodservice market
  • A leading retailer in home improvement products and services: we designed a solution to drive efficiencies across the organisation via:
    • Resource training
    • Automation with supplier relationship management applications
The project achieved:
  • A simplified procure-to-pay lifecycle
  • Cost savings of millions per year