As a consultant, I’ve had the opportunity to follow various stages in the market. One of the biggest advantages of working in the consulting industry is that you can observe events from a distance, yet still be highly involved in solving the problems that clients bring to you.
When clients decide to call a consultant, we know for sure that something has gone wrong with either the company or the owner. These are usually the main reasons clients seek help from consultants.
Such a situation occurred a few years ago when Lidl entered the market. First, they came to Belgrade and later expanded to smaller towns in Serbia. As news spread, calls from small retail chains became more frequent. “What should I do? Lidl is coming!” were the words of retail owners who had been in business for over 30 years. These stores were small, typically under 500 square meters, and located near mini centers in towns. Each neighborhood with such stores usually had a small center with a mini market, a local bakery, a pharmacy, and often a small kiosk or betting shop. This was where people perceived the local community events to take place.
One day, I received a call from a gentleman who introduced himself and said he was calling based on a recommendation. He urgently wanted me to visit. When I asked why it was important to come now, he said, "Lidl is coming! I don’t know what to do.” I decided to go and see for myself. After a warm welcome (as only our friends from southern Serbia know how to do), we toured the stores. During the tour, I quickly realized there were much bigger problems than Lidl, but how could I tell this to the scared owner? He was fixated on where Lidl would open, and that was the only topic, along with what would happen to his chain of stores. We visited all the stores, and while listening to the concern about "Lidl coming" I noticed excessive stock in every location, too wide a product assortment, improper product placement, not enough space for customers to move around, products on the floor, dust on items, and too few employees on site... and many other issues that were actually a result of poor organization in the stores. While the client continued talking about Lidl, I noticed the shopping frequency was high, but all customers came in, grabbed what they needed, and carried it directly to the checkout. I noticed the shopping carts—of course, hidden out of sight, far from the customers.
Everything I observed during the store visits were symptoms that triggered me to request detailed analyses. Fortunately, the owner of this retail chain understood that the problem wasn’t Lidl, and for the next few months, we worked hard on analyzing the product assortment, stock levels, shopping frequency, customer baskets, and many other aspects we identified as useful. We worked on improving processes, procedures, and organization. An organizational structure was needed, along with clear processes and procedures, and clear roles and responsibilities for employees. While we were busy with analysis and decision-making, Lidl opened its stores with a huge launch and strong marketing, exactly as they know best.
Do you know what happened to my client's sales? Nothing! On opening day, there was a slight drop in sales in stores located near Lidl, but that was it. By the end of the week, things returned to normal, following the old saying, “all wonders last three days.” It became very clear to me—Lidl was not competition for my client! You might wonder how that’s possible? From the analysis, we realized that the motivations for shopping were completely different from the shopping concept at Lidl. While Lidl might have been a strong competitor for larger retail chains, it wasn’t for the small neighborhood stores where customers go to buy things they need in the moment. From this story, an important question arises:
Who is my customer?
The answers to these questions give us a clearer picture of “Who is my customer?” or the frequently mentioned Buyer Persona. Digitalization has allowed us to work on this topic at a high level. After a period of attracting customers through promotional sales, the “big players” have started to turn to "loyalty programs," which collect a lot of data on consumer behavior. Data, the “black gold” of the 21st century, has become a powerful tool in the hands of the “big players.” Owning information and using it strategically has become a powerful tool for shaping consumer habits.
But how will small retail chains manage to fight this powerful battle of data collection?
Analyzing Existing Data!
My experience tells me that many of my clients are not using the data they already have effectively. Available data isn’t analyzed in enough detail, which means they miss out on opportunities to improve sales, procurement, processes, procedures, and overall business optimization.
As you saw in the case of my client from the beginning of this story, even small steps toward optimization can yield results. A clear vision and mission will greatly help in clarifying where we want to be in the future.
Checking the company’s strategic direction and considering new avenues that could bring new revenue and business results are crucial steps for successful business management.
When it comes to the company’s VISION, we can look at it from two angles:
Untapped Potential: This includes ideas from team members and key personnel that could utilize existing resources like knowledge, experience, human resources, suppliers, and clients.
Market "Gaps" – Opportunities: These are ideas that would leverage the current market situation or unmet needs that competitors haven’t fully addressed.
Every idea is carefully analyzed based on:
Based on these criteria, ideas are prioritized, helping to focus resources on the most promising initiatives.
This process helps a company identify new opportunities for growth and development and adapt its operations to changing market conditions. It’s necessary to clearly define:
And while I reminisce about the early days of working with my client, just a few days ago, the same client reached out with great news: “We’re growing, and we want to grow more, but we have a problem… there’s a lack of workforce.” The problem, the change, the solution, and yet another change remind us that we’re alive, we have a pulse, and we’re on the right track."
Embrace change, but try to be the creator of it...
See you soon,
Nada Niklanović
Nada Niklanović is a consultant with extensive experience in management, organization, sales, marketing, communication, and motivation. She began her career in advertising and the FMCG industry. After years of experience, she dedicated her career to training and educating teams to improve their skills and performance. With a certificate in "Management 3.0" and expertise in agile methodologies, Nada specializes in inspiring and innovative approaches to people and organizational management. She is also an accredited expert in "Inspire Happiness at Work" motivation, Coaching, and Organizational Transactional Analysis, which strengthens her work in increasing employee satisfaction and motivation. Her approach includes direct client interaction, solving the toughest challenges posed by companies. As an experienced trainer, Nada has conducted numerous training sessions in regional companies, known for her practical and experiential methodology. Her training sessions feature an interactive approach and the transfer of knowledge from everyday work with various companies.