Synopsis: Construction Equipment – Aftermarket Strategy
Our OEM client was looking to grow share in a highly competitive aftermarket parts market where will fit suppliers now had a significant portion of the business. It became critical to understand the needs of the market. Prior client research said customers want everything, price, brand, performance, service, and delivery. Since field sales people and dealers couldn’t change how the OEM operated most programs were price promotions.
QDI’s initial research shows that customers were interested in everything from price to delivery. The breakthrough came from our needs-based segmentation exercise identified two distinct customer groups. The first group purchased products based on their overall relationship with a supplier. The second was a “benefits / features” buyer.
QDI identified and measured the relative importance the top five needs (buying criteria). In addition we measured our client’s relative performance on each of the criteria. With this information, we conducted brainstorming sessions with our client to develop strategies to win back share from the aftermarket competitors.
Using the information we held brainstorming sessions where the client develop strategies to target programs to the customers that value the components of that criteria improving their market efficiency. The client then focused on improvements that would have high value and where they would have a competitive advantage (i.e. leveraging a strength they had).