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Celebrating a Return to Profit for Turk Tuborg

Enabling Sales Teams to Serve Themselves

Turk Tuborg was founded by a Turkish group, in partnership with Danish brewing company Tuborg in 1967. Carlsberg then acquired the business in 2001; yet despite serious investment, the business kept recording heavy year-on-year losses, leading to its eventual sale to International Beer Breweries (IBB) in 2008.

Our Understanding

Our initial analysis of the business confirmed that the scale and complexity of the business was obscuring the underlying causes of the losses that were being accrued, though it was clear that discounts and promotions were a leading cause of this complexity. We therefore determined that the scope of the model had to encompass all P&L lines, from Gross Revenue to Net Profitability, and that we needed to focus particularly on Sales and Outlet Sign-Ups.

Our Approach

In order to obtain a true and holistic view of outlet and SKU profitability, we held workshops with all relevant department leads and senior management to design an actual profitability model and a budgeting model that allowed side-by-side reporting and tracking.

The analysis was mostly led with involvement from Finance, though Sales, Marketing and senior management were also consulted. This enabled us to build the reports, dashboards, analysis packs, simulation tools and transfer know-how, as we acted as SMEs in interpreting the results. These centred around four main themes:

  • Benchmarking & Target Setting: providing simplified reports and self-service analytics, particularly for sales teams
  • Periodic Reporting: standard set of monthly and quarterly reports generated
  • Simulations: determining optimal customer investments when signing a new outlet
  • Scenario Analysis: Calculating alternate budget scenarios for reporting and decision-making

Measures of Success

From the outset, our delivery approach was two-pronged: focusing on high quality technical delivery and accuracy of results, as well as ensuring stakeholder buy-in and user capability building. Key to both of these objectives was focusing all company resources around profitability and embedding profitability management across the organisation.

This has enabled significant success for Turk Tuborg, which, since project completion, has seen market share grow from 10% to 30%, and has swung from heavy losses to profitability: with a -11% net margin in 2009 transforming into a very healthy +25% profit margin today.

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