New Market Entry
| CLIENT PROFILE |
| INDUSTRY Industrial & Durable Consumer Products |
| SIZE $75M in Sales at Engagement |
| GEOGRAPHIC MIX 75% US |
| MARKET POSITION #3 |
| UNIQUE LINES OF REVENUE 5 |
| CHANNELS TO MARKET Broadline Distribution, Value-Added Resellers, Direct, Private Label, Online |
| 3-YEAR CAGR AT ENGAGEMENT 7-8% |
| BACKGROUND |
| Client had experienced solid growth through its distribution partners, covering 40% of the addressable market. Leadership believed the company’s products would perform well across the broader market, consisting of distinctly different customers and channels but using similar products. CE2 was engaged to develop strategies for getting established in the broader market without disrupting current channels or otherwise affecting their ability to compete profitably. New sales and profit needed to be incremental. |
| OBJECTIVE |
| Develop a strategy for extending current products into an adjacent market segment without affecting current segment sales, the success or profitability of current channel partners, and without diluting client profit margins. |
| PROJECT DRIVERS |
| Strategic Objective: Expand the client’s addressable market, reduce risk through customer diversification. |
| Economic Objective: Hit revenue targets without diluting profit margins. |
| DELIVERED |
| Defined the attractiveness of the broader market both economically and strategically |
| Determined the products, services, and market-shaping requirements to win in new markets |
| Interviewed potential channel partners and investigated go-to-market partnerships with established non-competing organizations |
| Developed new price schemes for the client’s entire business that allowed new and established channels to coexist without conflict |
| Initiated discussions with a global market participant and established the financial and operating framework for an agreement giving our client overnight, sanctioned access to its over 350 U.S. distributors |
| Supported implementation |