Tikkurila is a Finnish manufacturer of premium decorative and industrial paint with well renowned local brands such as Tikkurila, Alcro, Beckers, Teks, and Vivacolor. End-users include paint professionals, consumers, and industries that are served through hardware stores, paint stores, and Tikkurila’s own professional stores.
- Industry: Manufacturing
- Founded: 1862
- Company size: 564 MEUR
- Markets served: Scandinavia, Eastern Europe, China
Challenge – Declining margins in the Swedish market
A history of high-profit margins and stable growth in combination with a complex distribution structure had led to weak structures and low visibility within the Swedish organization.
When the trend turned towards stagnating sales and a declining margin the structural problems surfaced and became visible within the organization. A legacy of outdated customer contracts emerged.
“There was a clear need to get the structure and rules for these in order to see how these discounts affect our profitability”, says Jan Lindgren, Country Sales Director, Tikkurila Sweden.
As a first step, Tikkurila decided to use external help to find the root cause of the profitability issues.