Our client, a Fortune 500 Construction Equipment Manufacturer, had recently expanded its product lines by introducing lower price point products targeted to smaller customers thus entering new markets where buyers were harder to reach. At the same time, their dominance in core markets was shrinking as the competition slowly chipped away at their market share. Also, their customers wanted to do business in new ways and were demanding a different approach and relationship with the manufacturer’s dealers.
Yet despite all of these changes the manufacturer and its dealers had continued with the same go-to-market model – marketing, selling, and supporting their customers in the same way that they had done in a historically less complex environment. Realizing the old business model was no longer effective the manufacturer engaged Channel Economics to revamp the ways they and their dealers were going to market.
One size does not fit all so rather than developing a one-time strategic plan or making blanket recommendations for all dealers, we delivered a strategic planning process accompanied by tools that the manufacturer and its dealers could use collaboratively on an ongoing basis. These tools and new processes enabled the manufacturer and their dealers to quickly assess local markets and develop the right strategies and tactics specifically tailored to an individual dealer’s market.
Working with the manufacturer we delivered the go-to-market strategic planning process to over 30 dealers globally and trained manufacturer and dealer resources on the process and tool sets. As a result nearly all of the dealers that participated in the initial deployment realized both market share and revenue growth. Most importantly, we were able to deliver the right business models that enabled the dealers to increase profitability. In some instances, revenue doubled while growing market share over a three to five year period.