Following Rapala VMC’s announcement regarding expanding its Global Management Team and promoting six senior leaders within the current management team, the Helsinki, Finland-based fishing tackle company outlined key priorities in its three-year strategic plan for 2024/26.

The company reported that the new management team (read SGB Media coverage here), with other managers worldwide, would focus on implementing the new plan, with measurable projects focused on improving profitability and working capital management.

Rapala said it believes the normalization of the over-demand situation created by the pandemic is nearing completion and believes market normalization will benefit the company. It closely monitors market trends and expects the recovery to open up opportunities for new growth.

Rapala reportedly sees its success based on 

globally renowned brands, but also on skilled, professional and committed personnel,” of which it continues to invest to ensure high competence and teamwork. The company’s “human-centric approach is an integral part of Rapala’s business philosophy and competitive advantage globally.”

To strengthen customer relationships, Rapala said it would “constantly interact with its customers and is ready to adapt to changing market conditions.” 

Rapala reported the successful launch of several new products for the 2024 season, including the Rapala CrushCity, a collection of soft plastic lures, the best-selling product in its category, and strengthens its most important target market in North America. The soft plastic market is larger than the hard bait market, which Rapala dominates.

Another positive message from the market is that fishing participation has climbed above pre-COVID levels.

Rapala focuses on strong positive cash flow and accelerates inventory turnover with its “Together – One More Turn” strategy. The “One More Turn” strategy offers the flexibility to react quickly to market changes while optimizing the business’s financial performance.

The company said Key Performance Indicators (KPIs) are essential for monitoring business and evaluating success. All Rapala KPIs steer operations in the same direction regarding financial performance, customer satisfaction, and process efficiency.

Operational improvement measures include increasing efficiency in production, optimizing logistics, improving process efficiency, and controlling costs. Digitalization and the use of global information systems and technology also improve Rapala’s business.

  • Prioritization: Rapala aims to identify critical business areas that directly affect profitability and market position. 
  • Customer focus: Rapala focuses on improving the customer experience and meeting market needs. 
  • Efficiency and cost awareness: Streamlining processes and reducing unnecessary costs. 
  • Growth potential: Rapala invests in product and market areas that bring long-term value. It is primarily developing its existing business areas.
  • Employee engagement: Rapala will engage its employees in decision-making and listen to their ideas to improve efficiency. 
  • Rapala will consult with experts when needed to gain additional perspective.

Rapala will invest heavily in the North American market in its 2024 operational plan based on market research and knowledge to systematically increase market share, strengthening Rapala’s position and competitiveness in its key market area.

In the European market, Rapala places a strong emphasis on restoring and growing profitability and market share. In addition, effective marketing campaigns and strengthening customer relationships are key to improving competitiveness.

In the Asian, South American and African markets, Rapala ensures the demand for its products leverages the appeal of its brands. The strategy is a localized approach, where products could be tailored to the specific needs of each market, strengthening brand awareness and attractiveness while promoting its position and growth opportunities in these areas.

Rapala reported it would use its “strong financial position for strategic investments, product development, marketing and increasing overall operational efficiency.”

Rapala VMC Corp, aims to increase shareholder value, informing investors of its plans, achievements and future prospects. Rapala will pay more attention to corporate responsibility and ethical practices to ensure long-term success.

Rapala believes that with strict cost control, targeted marketing, personnel training, and further investment, the company can succeed in the short and long term.

Photo courtesy of Rapala VMC