The Challenge: A leading security solutions provider had high market share in new construction, but was struggling to capture the same share in the aftermarket. The company engaged Blue Canyon to build an aftermarket growth strategy that would increase its market share to levels more equivalent to its position in new construction.

Assessment: After conducting a deep dive market assessment, Blue Canyon determined that the aftermath of the Great Recession disrupted the customer chain greatly and was impacting market share and pricing. New construction distributors began to focus on the aftermarket where there was already a channel designed to support the aftermarket. Additionally, some end customers had become large enough to buy directly from the manufacturer, further complicating the channel management and pricing. The conclusion was that the channel design needed focus.

Strategic Solution: To correct the channel issues, Blue Canyon outlined a plan for the client to create a supplier-led channel design for new construction and a channel-led design for most of the aftermarket. Additionally, Blue Canyon recommended that the client needed to be more selective in its choice of aftermarket channel partners (wholesales, aftermarket dealers and locksmiths) with operating rules that were transparent and tailored to the repair and replacement environment. Lastly, internal training was recommended to repair relationships with aftermarket participants.

Results:The client created an in-house team to implement Blue Canyon’s channel strategy and engaged Blue Canyon for a follow-on project to size the aftermarket based on Blue Canyon’s findings.