A leading instrumentation company recently introduced a product that was very poorly received in the market. The client believed the product would be very successful based on feedback from the field that indicated that customers were not getting the product as required.
The Client was left wondering “Why did the new product flop?” What can be done to fix the problem? The Client was a leader in the overall market, so it assumed that this new product would be well-received. Its sales force had indicated that with the proper advertising that the product could easily be pulled through the channel.
After determining that the new product was not going to turn around without a significant change in marketing focus, the Client decided to study the market and determine the real buying influences for the product. Thus, this instrumentation company turned to RSR to assess the level of influence that each customer type had on the purchase decision and to recommend the appropriate course of action to grow the business.
- Why has the client been so unsuccessful in gaining market share for this new product?
- After understanding the problem, what can the client do to increase market share?
RSR Approach and Methodology
- Determine the current, historical, and projected market size and shares – RSR conducted in-depth interviews with key executives from approximately 30 major suppliers to quantify and segment the market. We quantified competitors’ past, present and anticipated market shares in each of the key market segments. Through this effort, we were able to thoroughly, objectively examine the competitive landscape.
- Project market demand trends – RSR interviewed major suppliers and customers to determine the key growth drivers that were impacting the market place and their business. By identifying the growth drivers by market / product segment as well as the geographic region, we determined the key factors that a company’s strategy needs to influence in order to be successful in the market place.
- Benchmark and evaluate competitors’ business strategies – RSR identified and categorized the business models and strategies of various competitors. We then compared suppliers’ business strategies to their market share gains and losses to determine which strategies have historically been most effective.
- RSR recommended that the Client continues with its overall full line integrator business strategy but allocate more resources to new product development and international marketing.
- RSR recommended specific geographic areas and market segments to target and recommended focused sales and marketing initiatives to grow in these segments.
- As a result of the RSR engagement, the Client altered its marketing strategy and grew international sales at three times the rate of domestic sales.
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