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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

Project Objective

To aid the Client in re-prioritizing vertical market segments to pursue based on key criteria.

RSR Approach

Market Analysis

  1. Estimate the market size for each vertical market and segment the markets further to match the Client’s product portfolio.
  2. Estimate market shares and assess the competitive intensity in each of the segments of interest.
  3. Forecast growth rates and understand key growth drivers for each segment.

Customer Analysis

  1. Understand key purchase decision factors for each market segment relative to the Client’s product line.
  2. Assess customer loyalty and determine under what circumstances are customers receptive to evaluating another supplier.

Results

Key Study Findings

  1. Prioritized the vertical market segments of interest for the Client based on their relative size, growth prospects and competitive intensity.
  2. Identified a segment of the market that appeared to have room for another qualified supplier.
  3. Discovered an underserved market segment in which the Client’s share was lower than originally believed.

RSR Recommendations

  1. Recommended that the Client divert business development resources to both the faster-growing segment and the underserved segment.
  2. Identified necessary product and sales channel modifications needed to gain share in the newly targeted market segments.
  3. Recommended a staged implementation plan to focus on the most attractive geographic segments of the newly targeted vertical markets.

 

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