achieving market focus

 

problem statement

This company had been established by a group of Industry players and VC's to exploit a range of proprietary technologies which accelerate the R&D process for chemistry. The company was however struggling to achieve its revenue objectives. Following the departure of the CEO the Chairman of the Board requested a complete strategy review. We were invited to provide the customer perspective into this process.

our hypothesis

The customers did not have enough confidence in the company to place important business in any significant volume. This lack of confidence originated with a sales force which while strong technically, lacked commercial professional skills. We believed they were operating in too many markets and were attempting to support too complex a set of offers.

findings

Customers had a need for the services and a desire to buy more from the company but were unable to reach a suitable commercial arrangement. The real market demand was limited to only two key offering areas, out of a total of six maintained by the company. The lack of commercial experience in the sales force was highly visible to the customer, and strongly influenced their behavior.

impact on strategy

The company divested itself of the unwanted services and focused on two offerings. The sales force was dramatically restructured. The company started a program of active account management.

As a direct result of the dialogue started during the interview process the company improved their commercail relationships with several important customers - to the extent in one case that they were able to have permananet office space for the account manager to use at one key site.