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Consumer Goods & ServicesPMI Project for a Processed Meat Company



Looxent supported a leading domestic meat importer and distributor in formulating and implementing a post-acquisition integration (PMI) strategy. The project centered on analyzing key market trends and internal processes, focusing on channel expansion, logistics optimization, and IT system enhancements. Our recommendations aimed to strengthen the company’s competitiveness in the domestic market and establish a foundation for sustainable growth.

Industry Context
Korea’s meat market is steadily expanding, with notable growth in the demand for beef and increasing channel diversification. Key sales channels include major retailers, B2B wholesalers, B2B online platforms, and end-user clients. Given varying growth rates and profitability across these channels, a differentiated strategy is essential. Particularly, the B2B online channel is rapidly expanding due to its transparency and transactional convenience, making the company’s adaptation capabilities critical.

Sales Channel Expansion and Optimization
The company must reduce reliance on major retail channels and strengthen its presence in B2B online and wholesale segments. This involves curating product portfolios aligned with target customer segments, expanding and upgrading the sales organization, and fostering strategic collaborations with franchises and meat processors to drive tangible revenue growth.

Logistics and Production Efficiency
Current logistics and production operations are limited by existing facilities and workforce constraints. To overcome these barriers, the company should enhance the utilization of its current plants and, in the mid-to-long term, plan for investments to expand production and logistics capacity. Improving the quality of cold-chain logistics services will also build stronger customer trust.

Integrating and Upgrading IT Systems
Fragmented data and a lack of system integration currently impede operational efficiency. Strengthening capabilities in customer-level profitability analysis, real-time inventory management, and decision-making will be crucial. As the online channel grows swiftly, advanced IT infrastructure and more robust data analytics are imperative.

Enhancing Responsiveness to Market and Customer Changes
Korea’s beef market is undergoing continuous realignment amid rising import volumes and evolving consumer preferences. With B2B wholesale and online segments growing at accelerated rates, the company must sustain product innovation and maintain price competitiveness to respond promptly to market changes and preserve its competitive edge.

Strategic Recommendations

  • Diversified Product Portfolio: Expand refrigerated and frozen supply chains to meet varied customer demands and optimize cost structures by effectively utilizing non-premium cuts.
  • Stronger Management Systems: Establish reporting structures and KPI frameworks to improve decision-making speed and accuracy, maximizing organizational efficiency.
  • Focused Investment in High-Growth Channels: Given its growth and stable revenue model, the B2B online channel may become a dominant segment. Enhancing infrastructure and services in this channel is essential to securing long-term competitiveness.

This project enabled the company to align its strategic direction with evolving market conditions and outline practical execution measures. With these steps in place, the company is poised to achieve sustainable growth and a stable profit structure.



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LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.