Industrial Products & Capital Goods
Unveiling Competitive Strategy for a Leading Automation Technology Corporation
Client Challenge
A prominent German multinational corporation, renowned for its innovative automation technologies, particularly in pneumatics and control systems, sought Universal Consulting Pvt. Ltd. (UC) to conduct a thorough competitive analysis. With a significant presence in the Indian market and a focus on enhancing automation and operational efficiency across sectors like manufacturing, automotive, and electronics, the client relied heavily on direct channels for revenue.
The corporation aimed to understand the strategies of key competitors in strengthening their distribution channels. UC was tasked with delivering a comprehensive examination of Company A, covering product, pricing, geography, promotion, and distribution management, and focusing on distribution management for Company B.
Our Approach
UC adopted a mixed-method approach, combining primary and secondary research to provide a thorough competitive analysis. The approach included:
- Secondary Research:
- Conducted extensive secondary research to establish a foundational understanding of the industry landscape and competitive environment.
- Primary Research:
- Conducted in-depth field research in key regions with robust competition: Pune, Mumbai, Chennai, and Coimbatore.
- Engaged in interviews with industry experts, key stakeholders, distributors, dealers, and representatives from application industries associated with the companies under scrutiny.
Scope and Approach Details
- Company and Financial Perspective:
- Gathered comprehensive details about each company, including headquarters, manufacturing locations, team size, and financial performance over the last five years.
- Analyzed the breakdown of direct and indirect business, government business share, customer types, and application industries served.
- Product Strategy:
- Provided an overview of overall revenue distribution across key product categories.
- Examined specifics on highest-selling products, product customization flexibility, new product launches, and the value proposition of each category.
- Distribution Strategy:
- Offered detailed insights into the distribution structure, flow of goods, number of distributors, and revenue by geographies.
- Analyzed distributor stickiness, key reasons, categorization of distributors, schemes, and policies.
- Explored dealer selection criteria, logistics (primary and secondary), lead time, benefits, and government orders (distribution structure, types of distributors, and company personnel involved in the tender process).
- Pricing Strategy:
- Examined price positioning, margin structure, market practices, and discount structures for various stakeholders (OEMs small and large, traders, large and small application industries).
- Included analysis of market operation prices (DLP, CLP, MRP).
- Organizational Strategy:
- Provided insight into the organizational structure, hierarchies, number of employees at each level, roles and responsibilities, Key Result Areas (KRAs), and Key Performance Indicators (KPIs).
- Promotion and Training:
- Detailed promotional activities, key personnel involved in marketing and their responsibilities, participation in external exhibitions and related budgets.
- Included information on training schedules and plans for new engineers, dealers, and their technical staff, along with details about training centers.
Our Impact
The client received a comprehensive final report on the competitive strategy, featuring:
- Detailed analyses of Company A and Company B, encompassing all aspects within the defined scope.
- Concise one-page summaries for each company, providing an in-depth overview of product analysis, pricing strategies, geographical presence, promotional approaches, and distribution channel management.
Through this comprehensive analysis, UC provided the client with actionable insights to navigate the competitive landscape and refine their strategic approach in the Indian market.