A Client’s sales management team was exploring options to manufacture or private label the manufacture and marketing of a particular industrial instrument. This instrument is a core part of the Client’s offering but was never considered to be a good fit with the company’s operations. Recently, however, a potential strategic partner has approached the Client with the idea of joining forces to manufacture and market the product.
The decision to manufacture or partner entails a fairly large investment. Prior to making this move the Client required answers to critical questions, such as:
- What is the current and projected size of the market?
- How can the Client differentiate its offering from the competition
- Would customers entertain another supplier?
- Is it better to manufacture or engage in a private label agreement for the product?
Before implementing any strategic re-alignment, the Client turned to RSR Marketing Solutions (“RSR”) for assistance in gaining a fact-based assessment of the market and competitive landscape of other key market segments.
Overview of RSR Engagement
To aid the Client in re-prioritizing vertical market segments to pursue based on key criteria.
- Estimate the market size for each vertical market and segment the markets further to match the Client’s product portfolio.
- Estimate market shares and assess the competitive intensity in each of the segments of interest.
- Forecast growth rates and understand key growth drivers for each segment.
- Understand key purchase decision factors for each market segment relative to the Client’s product line.
- Assess customer loyalty and determine under what circumstances are customers receptive to evaluating another supplier.
Key Study Findings
- Prioritized the vertical market segments of interest for the Client based on their relative size, growth prospects and competitive intensity.
- Identified a segment of the market that appeared to have room for another qualified supplier.
- Discovered an underserved market segment in which the Client’s share was lower than originally believed.
- Recommended that the Client divert business development resources to both the faster-growing segment and the underserved segment.
- Identified necessary product and sales channel modifications needed to gain share in the newly targeted market segments.
- Recommended a staged implementation plan to focus on the most attractive geographic segments of the newly targeted vertical markets.
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