Marketing Case Studies: Growth/Pricing Strategy
Synopsis: Heat Pumps -- Growth Strategy Development
Working for the Electric Power Research Institute, we conducted primary market research to identify the performance benefits of heat pumps among consumers who had used both heat pumps and gas heat. In addition to economic benefits, we learned customers perceived heat pumps as providing superior comfort. This benefit clearly differentiated heat pumps from gas heat systems.
Synopsis: Writing Instruments -- Global Marketing Strategy
Our client was faced with a traditional, international marketing problem: highly autonomous individual country managers, each of whom insisted his/her market was "different." As a result, our client could not develop any global leverage in product development or marketing. To help resolve this problem, our marketing research consultants created a research methodology to size and segment the market in any country based on channels, product modes, price points and brand shares. We conducted research in the top fourteen worldwide markets to build a global model for each country to compare itself to. With this information as a base, our client had the leverage to begin to centralize key product and branding decisions.
Synopsis: Health Care -- New Product Pricing Strategy
Our client developed the next generation of product in their category and turned to QDI to learn the maximum price they could charge and still hit their volume targets. We blasted an email survey to 5,500 users of the existing products. From this we received approximately 1,000 usable responses. The survey described the new product, and integrated three different approaches to determine price elasticity. These included Van Westendorp Analysis, purchase intent at multiple price points and purchase intent versus market alternatives. The research results gave our client the confidence to price the product at a higher price point than previously considered, dramatically increasing profits in the initial launch year.
Synopsis: Building Materials Supplier -- Pricing Strategy
Our client sold through building material suppliers and was concerned their pricing practices were an impediment to success. Specifically, were they leaving money / contribution profits on the table and conversely, were the company’s pricing practices having a negative impact on market share and sales force behavior? To help our client answer these questions, QDI consultants conducted in-depth interviews with all the major market players: contractors, distributors, and the manufacturer’s direct sales force and reps. Using information gained from these interviews, QDI built a systems model designed to provide insight into the role of pricing on each market participant and each type of transaction. The model clearly pointed to a negative impact from the pricing process, information management system and sales compensation formulas. Based on this new knowledge, QDI recommended changes in pricing processes, data tracking and sales compensation to gain control over pricing and capture a greater percent of the potential profit in each sale.
Synopsis: Building Materials Manufacturer -- Growth Strategy
QDI conducted in-depth market analysis and learned the small number of architects the client could reach and influence was their bottleneck to growth. The breakthrough came when we discovered the key to influencing the design was providing the architect with case studies that matched their application AND environmental conditions. Within the client's huge CRM initiative were the communication tools to customize messages to architects focusing on their current project needs. Our client learned they could use CRM to address the specific issue that was blocking growth.
Synopsis: Pharmaceutical Process Equipment Manufacturer -- Market Growth Opportunity Assessment
Our client was looking to expand their process equipment business within the pharmaceutical and biotechnology markets. We sized the global market for each product category in this market and helped our client identify the major players for potential acquisition. We also developed a channel strategy that addressed how our client would market a broad basket of products instead of their traditional limited product line.
Synopsis: Pump Manufacturer -- Acquisition
Our client identified a European manufacturer that appeared to complement their product lines and would increase coverage of the European market. We studied the acquisition candidate's distribution, end-user franchise and recent strategic initiatives. The insight we gained directly affected our client's decisions on overall marketing fit and valuation of the target firm.
Synopsis: International Pump Manufacturer -- OEM Market Entry Strategies for Markets in Europe
Our client's objective was simple: learn how to grow market share outside of their home market. While they had operations in each major market in Europe, their share was minimal and their marketing organization was fragmented from country to country. We conducted research into the buying behaviors of the OEMs in each country to identify segments that were opportunities, based on the client’s product capabilities and the competitive landscape. Prior to our research, OEM targeting was a random event, and luck had more to do with success than strategy. The research helped the client achieve growth by identifying the highest priority markets and what our client had to do to seize these opportunities.
Synopsis: Power Transmission Equipment -- Service Growth Strategy
Our client was a leading manufacturer of power transmission equipment. A significant portion of the company’s profits came from its service business. QDI was asked to help develop a growth strategy targeting this business. Using in-depth research with end-users and distributors, QDI identified the dimensions on which customers choose their vendors for service. With this information in hand, QDI recommended service improvements that could more than double the manufacturer’s total revenue.
Synopsis: Water Treatment Equipment -- Growth Strategy 
Our client, a component manufacturer, was developing a strategy to grow business. They were far removed from the marketplace and relied on channels who were not aggressive marketers. QDI’s assignment was to learn how the market works and identify the leverage points that would grow market share. We conducted research with each layer of a multi-channel market, including branded and private label OEMs, distributors, dealers (both franchised and independent), retailers, and big box retailers. From our research findings, we were able to build a market flow model which identified and sized the flow of products from the component manufacturers to the OEMs. We learned the nature of our client’s market strength and how to leverage this to grow market share. Our strategy recommendations provided our client with a road map to more than double revenue.
Synopsis: Waste Management Market -- Growth Strategy
A leading manufacturer of equipment to the waste treatment market was in need of a channel strategy that would grow its business. The client’s goal was to become the number one or number two supplier in each region and to increase the profitability of their business. Through in-depth interviews with the municipalities and haulers who made up the market, QDI consultants were able to determine that our client had very weak market presence to the medium and small customers. We helped design a sales process and organization to see and influence these customers early in their purchase process.
