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 Concreters Warehouse
17 Jul 2006
 Article PDF (
95KB)
Bescon Industries with their retail brand of Concreters Warehouse is a family owned business that began in 1986. Bescon products are sold throughout Australia, Asia and Europe and are of the highest quality in decorative concrete products.
Concreters Warehouse incorporates several features that add value to the total experience for their customers. The products are displayed in their retail stores allowing customers to see and feel the end product. They are presented within clean and well-presented premises making the store appealing to “mums and dads” as well as tradespeople looking for ideas and products.
The founder of Bescon Industries, Vince Greco, has been at the forefront of decorative concrete technology since its inception in the 1980’s. High levels of innovation and distinct experience in the building industry give Bescon products the competitive advantage it needs to be a market leader in the decorative concrete industry.
The Challenge
Bescon Industries superior product had realised significant success in the city of Melbourne, and the company was faced with the opportunity to grow market share and enter new markets through its retail brand – Concreters Warehouse.
Competition: How do we gain competitive advantage in an industry that
is experiencing decreasing margins due to high levels of competition?
The challenges Concreters Warehouse management faced were:
- The high costs of distribution, coupled with the increasing levels of competition, placed pressure on profit margins and the rate of growth
- Developing a competitive edge over other decorative concrete providers by building the Concreters Warehouse brand
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Developing a distribution network to deliver Bescon products and increase market share
The Solution
DC Strategy was engaged to develop a distribution strategy for Concreters Warehouse to allow it to grow. In developing the growth strategy, key financial criteria such as a return on investment and capital costs were central in determining the appropriate growth strategy.
Innovation: It is important to think outside the square,
and deliver solutions that achieve the objectives and can be executed.
The result was the development of a business model, utilising existing retail locations with complementary product offerings. This “shop in shop” business system allowed the existing business owner to control overhead costs and create synergies between existing products and decorative concrete products. The new business model contemplated the existing owner being an owner-operator of the Concreters Warehouse business system by including it within their existing business. The organisational head office structure was redeveloped to recognise the need to drive and maintain the operational performance within the retail channel.
The Outcomes
DC Strategy worked closely with Concreters Warehouse owners and management team to overcome their challenges and develop a growth strategy by creating the following outcomes:
- Development of a viable retail business model
- Development of an appropriate organisational structure
- Detailing the necessary policies and procedures for the new distribution model
- Identification of the financial structure and performance drivers of the business to improve the understanding of the cost base and revenue drivers
- Development of an Operational Procedures Manual detailing the best practice approach to managing a retail operation
Distribution: No matter how good the product is,
if it is not reaching the target market it won’t sell.
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DC Strategy (International Head Office)
Level 5, 530 Collins Street
Melbourne, Victoria, 3000
Australia
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