62 Cover story

ISSUE 62 - MARCH 2010 > COVER STORY

It’s been a busy few years for Rawlplug, shaking off the legacy of previous ownership and restructuring both manufacturing and distribution supply chains. Now, says managing director Justin White, it’s time to focus on people – particularly the ones that really matter, Rawlplug customers.

Last September Artur Zygarlicki, now returned to Poland to concentrate on Rawlplug’s export potential, surprised many by telling this magazine “It’s a good year for Rawlplug.” Justin White, who joined the UK Company early in 2009 to rebuild its sales force, concurs. “Artur was right in saying that Rawlplug went through the fire in 2008 and had no choice but to confront a whole series of issues, not least related to service and availability, head on. We did, and as 2009 developed we saw the results, just as our competitors were forced to respond to the realities of rapidly deteriorating market conditions.”

The results are there to be seen; 19% growth in 2009 compared with 2008, rolling year growth of 32% and 65% growth for January and February year on year. “We have regained the momentum,” says Justin White, “at the very time many of our competitors have found it tough. That certainly doesn’t mean we can be complacent but it is a clear signal that we are recapturing belief – self belief within a stronger, much more energetic sales team and, more importantly, the belief of our customers, who understandably have tested us hard over the last year, before reinvesting their trust.”

“Now that we have resolved the issues of the past we have re-engaged with customers who may have left us and in the majority of cases re-established our working relationship with them. People were careful to test us, they often chose challenging sizes to throw at us, and we’ve come through that very well. We’ve rebuilt the customer base because we do now have that continuity of stock - we can actually deliver what we say we will.”

While the Rawlplug brand continues to achieve high levels of recognition and good business through the DIY and hardware sector, the proactive emphasis is on the independent construction distribution sector.

“We support our retail customers very well and present them with new opportunities every time we launch a new product program, helping to identify opportunities within our customer’s market for them to target.”

“Selling to and supporting the distribution sector, is where we really can dedicate our energies to good effect. That’s where we have doubled the size of our turnover and doubled our customer base since July last year.” By April Rawlplug’s sales team will have expanded to twenty-seven, five more than at the beginning of 2010.

It is not just a numbers game, though. The energy is carefully directed and structured to ensure maximum effect, and in particular customer satisfaction and growth. “We have introduced clear procedures to underpin the activities of the sales force,” explains Justin White. “We have also changed the mentality, it is no longer enough to make the occasional unfocused call. We carry out far more analysis now, targeting the right products to the right customers. Our sales people go in with a clear purpose, they play a far more dynamic role in the relationship and are pivotal in the development of the customer’s business with Rawlplug.”

For the UK business there is clear evidence of the transition from a historical manufacturing business to a sales and customer focused operation. The management structure is flat; the sales and marketing support team, based in the new Guildford office, is directly involved in analysing the relationship and in responding to customer needs. “We are listening much more carefully to our customers,” says Larissa Neve, customer development manager. “Their needs and concerns underpin our strategy for the future in every aspect of our business. We are now a customer focussed organisation with a strong, experienced and knowledgeable sales force driving our business.”

“It is a team now,” emphasises Justin White, “pulling in the same direction. That is not something that has to be achieved through authority; it has quickly become self-regulating. It’s a competitive atmosphere, everyone wants to beat their target, but it is also supportive. The other guys will celebrate the success of one of their colleagues – but it really spurs them on to make sure they are top of the league next time.”

There remains a very important sense of realism in Rawlplug’s management. “We have put in motion a comprehensive business plan setting out where we want to be in two years time,” says Justin White, “but right now we have to deal with our business as it is. We have to understand that position and develop from that point. We’ve geared everything around what our business was and is, so that we can enhance that and gain the maximum we can from that structure. The support functions from our Head Office in Glasgow are paramount to this as we ensure that we are customer focussed to the core.”

Whilst some fixings companies are looking at the direct to end user route, Rawlplug are solely focussing on distribution. “What we are doing is bringing to bear all of our experience in structuring and focusing sales efforts to re-establish the Rawlplug brand in the UK. That includes using our sales ability alongside our customers, in helping them develop their market for Rawlplug, as much as in using it to ensure an excellent relationship with us as a supplier.”

Rawlplug acknowledges the opportunity for organic growth in the UK market is limited. “We are still welcoming new and returning customers,” says Justin White, “and are putting maximum effort into ensuring their experience with us provides the platform for a long term relationship. The market is still financially tough, but working with our partner customers, we are maximising sales despite these turbulent times.”

New range development is, therefore, important in developing sales laterally. There have already been new launches and others are planned – although the voice of realism is quick to be heard. “We’ve been very cautious bringing new products to the market. We cannot make the mistakes of the past,” says Tom Wavre, marketing manager. That means researching the market opportunity thoroughly and being absolutely sure the continuity of availability is there to support a new introduction.

“It’s changing, we are getting better,” concludes Justin White, “it is a massive plus that the Rawlplug brand is so strongly recognised in the UK. We want it to stand for a complete fixings supplier, one that delivers exceptional value with good, well-priced products. That way our customers can be as proud to sell Rawlplug as we are to be part of it.”

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