The Challenge: A leading security products and solutions provider had previously 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. Based on Blue Canyon’s work on this project, the client hired Blue Canyon to determine the size of the “good” product segment for mechanical locks, closers and exits; identify differences between “good,” “better” and “best” segments; and, determine how a “good” client offer could be differentiated from others in the segment.

Assessment: Blue Canyon utilized a top-down, bottom-up forecasting method, which results in four top-down alternative forecasts and five forecasts based on bottom-up approaches. In the second phase of the project, the client project team conducted in-person market interviews as well as an on-line survey to confirm market estimates and develop an understanding of the differentiation in the market, both in terms of segments and product offers.

Strategic Solution: Blue Canyon sized the “good” segment at between $450-$500 million annually and determined that although three distinct segments existed, channel partners typically handled only two. Therefore, it was necessary to have three, although there was very little differentiation between the three segments, particularly between the “good” and “better” segments (except for price). However, the client project team did identify opportunities to develop services and developed value propositions for entry into the “good” market.

Results: The client is currently piloting a program of services designed for one of its channels and investigating sourcing options for a “good” product entry. If implemented, the client will gain a better position in the aftermarket channel and solidify it position among its premium products.