US market entry into water industry

Manufacturer Considers US Market Entry into Water Industry

Challenge: An international plumbing fixture manufacturer had developed a new, revolutionary bathroom fixture technology that integrates with building automation systems to improve user experience, reduce water usage and costs, and promote sustainability. The company decided to evaluate this solution for the US market by first assessing California given the state’s recent water-usage regulations and booming construction industry. The client needed to understand the California market trends and dynamics, whether these trends would support their solution, and what the best entry strategy would be if the market proved attractive.

Assessment: Blue Canyon provided a comprehensive assessment of the California plumbing fixtures market through a complex market sizing of the commercial construction market, detailed assessment of water-efficiency trends in new construction, and outline of customer chains. The client’s integrated plumbing solution was different than other traditional plumbing offerings available in the market, which introduced new technology and BMS players into the customer chain and required a fresh approach to target potential customers.

After evaluating the California market, Blue Canyon created needs-based segmentation to identify which customers would find value in the client’s integrated solution. In-depth market interviews with key stakeholders indicated that the solution’s value proposition appealed most to two customer segments:

  1. Companies and organizations with sustainability-oriented priorities, and
  2. Those focused on promoting operational efficiencies and risk mitigation in building management

Blue Canyon estimated that the potential market in these segments fell between USD $66MM and $114MM.

Strategic Solution: The client’s unique solution called for strategic steps to ensure the product could successfully be introduced into a market that was unfamiliar with an integrated plumbing offering. This included building relationships with key decision makers along the customer chain such as building owners, brokers, and environmental influencers who would be interested in promoting a water-efficiency solution. Blue Canyon also recommended that our client target large sustainability-oriented customers for California-based pilot programs to increase brand awareness, strengthen their business case through project data, and serve as a use-case for future potential customers.

Result: By engaging Blue Canyon, the client was able to gain insights about an unfamiliar market, achieve alignment on the appropriate types of customers to target, and understand the key decision makers and influencers with whom they would need to build relationships. Armed with confidence in the decision to enter the California market, the client now has the opportunity to not only add over USD $100MM in revenue, but also to launch a game-changing solution that has the potential to reshape the plumbing fixture landscape across the entire US market.

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