Case 3:

Repositioning and Integrating Competing Construction Equipment Products


Need

An industrial construction equipment manufacturer in North America needed both a sales strategy and tactics to implement a joint venture with a Japanese supplier of competing excavation equipment.

Both product lines were to be sold through the same dealer network.

There was an extensive overlap in the markets addressed by both product lines (over 70%)

 

Solution

We determined the positioning of each product line relative to competitors.

We assessed the needs of markets unique to each product line.

We clarified how the conflicting sales and distribution needs of each supplier could be met through the same dealer distribution network.

Sales efforts were directed to ideal fits with the 30% of market unique to each line and with competition where they had the best price-performance fit.

We took steps to both educate and motivate the dealer network to sell the competing excavator line without taking sales away from the domestic supplier.

 

Results

Within two years, both lines had increased their market share, revenues and profits.

1 Canadian Place, Suite 350, Toronto, Ontario M5X 1C1 - Tel: (514) 977-1457