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Headquartered in Copenhagen,
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Pandora is the world's biggest jewelry brand
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renowned for its customizable charm bracelets
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and designer rings and necklaces.
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The company markets its product in more than 100 countries
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on six continents.
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Pandora had achieved impressive revenue growth rates.
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But its like-for-like sales began contracting fast
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starting 2017 and turned negative in 2018.
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Leaders decided to engineer a turnaround
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and asked BCG to help craft
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and execute a large-scale transformation program in 2018
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called Program NOW.
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Be it online or offline,
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there were just less people coming to us.
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And the reason being that our brand just became irrelevant.
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So I think the foundational piece was the analysis
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that essentially, it created the baseline for this program,
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which we called Program NOW.
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And this consists of three big themes.
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One which was around getting the heat back into the brand.
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The second piece was around creating better access to people
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to kind of connect with our brand.
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And then the third piece was a big cost reset exercise,
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which essentially was funding
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the activities in the previous two.
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We've taken out something equivalent to
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6% of our revenue base in cost.
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We've taken that out,
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but we actually reinvested all of it and then some.
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So how did BCG help design and implement Program NOW?
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First of all, we designed a two-year end-to-
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end transformation program together with management.
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It comprises seven major work streams
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encompassing all parts of the company, including:
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reinventing the consumer experience from store to online,
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launching a new website to improve brand access,
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resetting the commercial strategy,
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including reconfiguring promotion schedules,
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designing an end-to-end merchandising process
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to improve like-for-like sales,
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and finally, a comprehensive cost program
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to free up funds for the program.
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We also designed a transformation management office
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to keep track of the program at all times.
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We had regular check-ins with the CEO and the CFO.
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Secondly, we worked very closely
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with the C-suite executives,
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co-developing initiatives
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and ensuring buy-in at all times.
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Our team on the ground worked shoulder to shoulder
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with the Pandorans, ensuring ownership of everything we did.
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And finally, we drew on the full strength of BCG,
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including experts from all over the world
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and from BCG Platinion and BCG Gamma.
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From a financial standpoint,
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we now have a business that's healthy.
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So we've gone from a very shaky, declining situation
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to now something which is stable and rock-solid
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and is far more predictable.
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We've also built a capability.
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So one thing is you can take some strong medicine,
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but you also need to kind of get fit for the future.
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And I think we've spent a lot of time on doing that.
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We've established new values,
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and I think values are a key component
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of creating a company culture.
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We are closer to the customer.
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(gentle music)