The Challenge: A leading U.S. manufacturer of commercial engines was facing increased competition from local European competitors, as well as other established global players. The client sought to better understand the needs of the market to double its single-digit European market share.
Assessment: Blue Canyon conducted quantitative and qualitative research to understand the market size, customer chain segments, and purchase decisions of key end customer OEMs. We found that the client’s product available market was estimated to be two-thirds the size of the North American market, but with significantly different purchase decision criteria. Europeans wanted a smaller equipment footprint, a more environmentally friendly application, and stronger post-sale parts and services.
Strategic Solution: Blue Canyon identified three clusters of market segments that would place a high value on the technology offering of our client. These segments were also characterized in terms of their willingness to reward firms for service offerings and as to the price points at which offerings would be successful. These market segments were sized at over $150 million in revenues.
Results: Our client’s revenues increased by 32% in the first year, and by the end of year two, market share exceeded its targets by increasing 300%.