How a construction equipment manufacturer increased its market share and enhanced sales by over 15%
Background and Challenge
- World’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial turbines and diesel-electric locomotives. The company has reported sales revenue of over USD 40 billion during 2020 from their service and product lines.
Challenges Faced by Client:
- Difficulties in evaluating the market opportunity : The client recognized the difficulties in understanding the Peru construction equipment market with focus on key product categories across Excavators, Cranes, Engines, Vehicle, Trucks and multiple others. Hence, they contacted Ken Research and Strategy Advisory to identify all stakeholders for the collaboration in their logistics operations.
- Limited Resources and Time to Identify the Chief Competitors: : In addition, the client was interested in assess competition scenario with an objective to evaluate positioning of peers, hence they outsourced this activity to Ken Research.
Construction Equipment Industry at Glance:
- Peru construction equipment market is majorly focusing on how to reduce the infrastructure gap in order to boost their economy. Due to lack of assembly/manufacturing units, the Peruvian government plans to allocate budgets which will further help to diversify the manufacturing sector.
- Rising modernization in the country would also increase the demand for mechanization of goods and services, which will further boost both sales and rental services of construction equipment.
Approach and Recommendations
Phase 1: Provided the study on Construction equipment and ecosystem of players
- Ken collaborated with its client to share the detailed market research on all type of construction equipment in Peru, by listing down the entire ecosystem and evaluating the demand pattern for redevelopment and new construction projects.
- In-depth and detailed discussions were carried out with the top decision making authorities.
- These discussions gave the client possible indication to get a know the Construction equipment market is positioned in Peru.
Phase 2: Key Analysis of each segment and competition framework
- The second phase of work focused on The second phase of work focused on analyzing the competitive landscape of major companies.
- Ken Research’s team has interviewed each of the competitors and was able to ascertain their sales by type and region, including assessment on new models, pricing and future plans which competitors have
- The client was able to get clarity on Competition scenario and customer survey conducted by the team was able to support the client to understand the white space and gaps that exists in the demand with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Phase 3: Quality Recommendations and advisory for the client
- After identifying and analyzing the overall market, ken provided quantitative intelligence on current models in demand and upcoming models
- Key recommendations for improving likelihood of success of the business model were also pitched.
- Ken has provided a clear road map to the Client was able to provide 360 degree view of construction equipment market in Peru to the client by helping them understand historical and future sales expected by type, region and application areas
Result and Conclusion
Providing the Right Value-add to Client's Requirements
- Ken research value-add enabled the client to understand the current models in demand and upcoming models which is expected to impact the service providers in future
Valuable Insights on white space and gaps in the industry
- Ken Research’s team has conducted customer survey and was able to support the client to understand the white space and gaps that exists in the demand.
To the Way Forward
- The client was able to understand 360 degree view of construction equipment market in Peru and helping them understand historical and future sales expected by type, region and application areas
increased sales and garnered market share