WEBVTT 1 00:00:03.480 --> 00:00:04.980 Headquartered in Copenhagen, 2 00:00:04.980 --> 00:00:07.520 Pandora is the world's biggest jewelry brand 3 00:00:07.520 --> 00:00:10.210 renowned for its customizable charm bracelets 4 00:00:10.210 --> 00:00:12.363 and designer rings and necklaces. 5 00:00:14.070 --> 00:00:17.470 The company markets its product in more than 100 countries 6 00:00:17.470 --> 00:00:19.530 on six continents. 7 00:00:19.530 --> 00:00:22.230 Pandora had achieved impressive revenue growth rates. 8 00:00:22.230 --> 00:00:24.960 But its like-for-like sales began contracting fast 9 00:00:24.960 --> 00:00:28.803 starting 2017 and turned negative in 2018. 10 00:00:30.010 --> 00:00:32.880 Leaders decided to engineer a turnaround 11 00:00:32.880 --> 00:00:35.090 and asked BCG to help craft 12 00:00:35.090 --> 00:00:39.550 and execute a large-scale transformation program in 2018 13 00:00:39.550 --> 00:00:41.043 called Program NOW. 14 00:00:43.590 --> 00:00:44.800 Be it online or offline, 15 00:00:44.800 --> 00:00:46.850 there were just less people coming to us. 16 00:00:46.850 --> 00:00:51.263 And the reason being that our brand just became irrelevant. 17 00:00:52.150 --> 00:00:54.950 So I think the foundational piece was the analysis 18 00:00:54.950 --> 00:00:59.250 that essentially, it created the baseline for this program, 19 00:00:59.250 --> 00:01:00.960 which we called Program NOW. 20 00:01:00.960 --> 00:01:03.980 And this consists of three big themes. 21 00:01:03.980 --> 00:01:08.050 One which was around getting the heat back into the brand. 22 00:01:08.050 --> 00:01:11.610 The second piece was around creating better access to people 23 00:01:11.610 --> 00:01:14.530 to kind of connect with our brand. 24 00:01:14.530 --> 00:01:18.550 And then the third piece was a big cost reset exercise, 25 00:01:18.550 --> 00:01:20.690 which essentially was funding 26 00:01:20.690 --> 00:01:23.160 the activities in the previous two. 27 00:01:23.160 --> 00:01:25.387 We've taken out something equivalent to 28 00:01:25.387 --> 00:01:29.290 6% of our revenue base in cost. 29 00:01:29.290 --> 00:01:30.380 We've taken that out, 30 00:01:30.380 --> 00:01:33.283 but we actually reinvested all of it and then some. 31 00:01:34.440 --> 00:01:37.870 So how did BCG help design and implement Program NOW? 32 00:01:37.870 --> 00:01:40.200 First of all, we designed a two-year end-to- 33 00:01:40.200 --> 00:01:43.600 end transformation program together with management. 34 00:01:43.600 --> 00:01:46.100 It comprises seven major work streams 35 00:01:46.100 --> 00:01:49.330 encompassing all parts of the company, including: 36 00:01:49.330 --> 00:01:53.350 reinventing the consumer experience from store to online, 37 00:01:53.350 --> 00:01:57.050 launching a new website to improve brand access, 38 00:01:57.050 --> 00:01:58.640 resetting the commercial strategy, 39 00:01:58.640 --> 00:02:02.040 including reconfiguring promotion schedules, 40 00:02:02.040 --> 00:02:04.630 designing an end-to-end merchandising process 41 00:02:04.630 --> 00:02:07.170 to improve like-for-like sales, 42 00:02:07.170 --> 00:02:09.960 and finally, a comprehensive cost program 43 00:02:09.960 --> 00:02:11.890 to free up funds for the program. 44 00:02:11.890 --> 00:02:15.280 We also designed a transformation management office 45 00:02:15.280 --> 00:02:18.050 to keep track of the program at all times. 46 00:02:18.050 --> 00:02:21.140 We had regular check-ins with the CEO and the CFO. 47 00:02:21.140 --> 00:02:23.070 Secondly, we worked very closely 48 00:02:23.070 --> 00:02:24.680 with the C-suite executives, 49 00:02:24.680 --> 00:02:26.405 co-developing initiatives 50 00:02:26.405 --> 00:02:29.090 and ensuring buy-in at all times. 51 00:02:29.090 --> 00:02:31.350 Our team on the ground worked shoulder to shoulder 52 00:02:31.350 --> 00:02:34.820 with the Pandorans, ensuring ownership of everything we did. 53 00:02:34.820 --> 00:02:37.330 And finally, we drew on the full strength of BCG, 54 00:02:37.330 --> 00:02:39.920 including experts from all over the world 55 00:02:39.920 --> 00:02:43.150 and from BCG Platinion and BCG Gamma. 56 00:02:43.150 --> 00:02:44.600 From a financial standpoint, 57 00:02:44.600 --> 00:02:46.660 we now have a business that's healthy. 58 00:02:46.660 --> 00:02:49.670 So we've gone from a very shaky, declining situation 59 00:02:49.670 --> 00:02:51.920 to now something which is stable and rock-solid 60 00:02:51.920 --> 00:02:53.483 and is far more predictable. 61 00:02:54.440 --> 00:02:56.810 We've also built a capability. 62 00:02:56.810 --> 00:03:00.450 So one thing is you can take some strong medicine, 63 00:03:00.450 --> 00:03:02.970 but you also need to kind of get fit for the future. 64 00:03:02.970 --> 00:03:06.070 And I think we've spent a lot of time on doing that. 65 00:03:06.070 --> 00:03:08.410 We've established new values, 66 00:03:08.410 --> 00:03:10.890 and I think values are a key component 67 00:03:10.890 --> 00:03:13.240 of creating a company culture. 68 00:03:13.240 --> 00:03:15.323 We are closer to the customer. 69 00:03:15.323 --> 00:03:17.990 (gentle music)