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Re-investing In Product Development

After spending most of its time and resources, restructuring the company to weather the financial downturn, a leading industrial automation company decided to revisit its five year growth plan. In the plan there were a number of assumptions regarding market trends, competitive positions, and customer drivers that had changed due to the industry downturn. However, the Client’s core growth strategy of expanding its product line in emerging markets and new technologies remained intact. As such, the Client decided to invest again in its product development cycle.

Within a few weeks of re-affirming its strategic goals, the Client chose three to four product initiatives to pursue. The market for these products, however, had also changed significantly with the global recession. As such, the Client contacted RSR Marketing Solutions to obtain a current assessment of the market potential for each of the new technologies and/or emerging markets of interest.

Project Objectives

Help the Client gain an in-depth understanding of the competitive landscape in the new technologies and geographic regions of interest.

Approach

Market Analysis
  1. Quantify and segment alternative energy markets by geography and value added component.
  2. Assess 3-year energy growth rates and drivers to determine the market potential for each alternative energy segment.
  3. Assess profitability levels and drivers.
Customer / Competitive Analysis
  1. Determine customer’s appetite for switching to new technology.
  2. Assess customer loyalty to the current supplier(s).
  3. Determine the key threats and barriers to success.
Recommend Growth Strategies
  1. Project the Client’s 5-year revenue growth potential by technology and segment.
  2. Discuss options to improve the the Client’s 5-year revenue and profit forecasts.

Results

Financial
  1. The Client refined its five year projections based on realistic growth targets.
  2. Profitability projections were increased based on study input.
Strategic
  1. The Client refined its strategy to target the market that was most open to switching technology and suppliers.
  2. The Client prioritized its key demographic regions to pursue.

 

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