Refuelling growth with a New Value Proposition
A leading oil major rejuvenates its global customer offer and experience in the marine lubricant sector.
A leader in the global market for marine lubricants had experienced a prolonged period of growth stagnation. Management were concerned competitors were growing market share whilst simultaneously diminishing the size of the sector’s profit pool focusing customers on price at the expense of everything else. Management turned to Focus Solutions for assistance.
The answer resided in thinking differently about customer and prospect behaviour and their distinct needs in choosing lubricants and suppliers. Previously, the company had focused exclusively on existing customers and overly relied on revenue optimisation through 1,500+ products.
Focus Solutions’ approach identified four key market segments with distinctive needs. We helped the team identify weaknesses in it’s customer offer and customer experience before substantiating those of competitors using the new segmentation model. From here Focus Solutions completed market research to better categorise customers and prospects; developed a new global customer offer and experience that incorporated regional flexibility, new elements of differentiation and new pricing; aligned internal systems, processes and resource to support the branded customer experience; developed new marketing and sales literature; and embarked on internal training for Account Managers and the Technical Sales Team.
The company’s performance improved significantly. Withdrawing from unprofitable market segments and concentrating on those it could win in with the new value proposition yielded an 8% increase in revenue in the first 12-months and supported a higher price premium position.