An instrumentation supplier was evaluating the best means to enter the fast growing US oil and gas shale market. There are many potential areas to pursue, and the Client needed to choose the best plays to enter and the appropriate entry strategy. Some of the Client’s questions included:
- What are the fastest growing regional plays for the instrumentation of interest?
- Who are the key purchasers, influencers and potential channel partners?
- What are the key purchasing drivers and opportunities for competitive differentiation?
Given the instrumentation supplier’s limited knowledge of the market, the Client turned to RSR Marketing Solutions (“RSR”) for assistance in gaining a fact-based assessment of the market and competitive landscape in each of several regional plays.
Overview of RSR Engagement
Project Goals and Objectives
To aid the Client in its market entry decision by quantifying and segmenting the regional shale oil and gas markets for the instrumentation of interest.
- Estimate the market size by region using a bottoms-up technique (summing sales of current suppliers), validated by a top down approach.
- Estimate market growth and intensity of use of the instrumentation product by regional play, and the reasons behind local differences.
- Understand market drivers such as environmental regulations, alternative technologies, and local competitive intensity.
Customer / Competitor Analysis
- Understand customer behavior and preferences in each region for the Client’s instrumentation versus alternatives.
- Understand the value chain for the equipment that uses the Client’s instrumentation, and determine the instrumentation requirements of key end users and influencers.
Key Study Findings
- Rank ordered the regional markets in terms of their attractiveness to enter so the Client can best align its resources with market opportunity.
- Found lead times to be a key unmet need in many of the regions; existing suppliers in some areas were not keeping up with demand.
- Found major differences in demand for the client’s instrumentation versus alternatives by region.
- Suggested the client develop a dedicated sales force to target two regions; identified specific customers who appeared open to using a new instrumentation supplier.
- Emphasized the importance of maintaining local inventory to facilitate quick delivery.
- Suggested locally-tailored marketing messages for the client to compete against competitors and alternative technologies.
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