The global ceramic coating market is anticipated to reach a value of $10 Billion by 2020.
Typically, ceramic coating promotes increased heat resistance coupled with fewer emissions to the atmosphere. Such factors are likely to supplement the growth prospect of the ceramic coating market in the coming years. Additionally, these products are gradually finding applications on metal parts in vehicles owing to its suitable properties of corrosion and abrasion resistance along with it being an excellent thermal barrier. Furthermore, with growing R&D activities, ceramic coating manufacturers have started venturing into broader application segments. Presently, transportation and automobile are expected to be the largest application segments for ceramic coatings. However, with further product innovations, ceramic coating is likely to have a larger application share than its counterparts such as conventional coatings in the coming years.
The Business Challenge
- The client: A ceramic coating manufacturer
The client, a manufacturing major specializing in ceramic coating, wanted to analyze the regulations and investment options in the chemical industry space to secure potential customers. As a result, the client wanted to categorize their potential competitors and their product positioning strategies. Additionally, the client wanted to gain improved transparency into the chemical industry space and devise robust strategies to enhance sales performance.
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To help the ceramic coating manufacturer profile key target segments, the product segmentation specialists at Infiniti carried out a comprehensive research comprising interviews and discussions with leading stakeholders in the chemical industry. The specialists also compiled information from a wide array of sources such as paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
The ceramic coating manufacturer was able to leverage the use of demographic parameters to segment their target audience effectively with the help of Infiniti’s product segmentation engagement. The client also understood customer personality traits, values, attitudes, interests, and opinions. This helped them divide a broad target segment into subsets with similar desires and needs. Furthermore, the client improved product launches and enhanced brand awareness.
Incumbent ceramic coating manufacturers must prepare for further encroachment of commoditization and erosion of their historical advantages when attackers from developing markets gain more experience and become increasingly technologically savvy. Additionally, the value-add potential of many chemical industry conglomerates will be challenged more intensely than ever, and so will their questionable claim that they can upgrade their portfolio in a way that generates value for shareholders.
Why leverage product segmentation strategies?
Our analysis of the global chemical industry shows that ceramic coating manufacturers are facing challenges in terms of:
- Growing competition: Staying ahead of the competitors becomes challenging for ceramic coating manufacturers as the threat of new entrants in the chemical industry is relatively high. Moreover, the chemical industry is also witnessing competition from non-traditional sectors including the utilities, energy, and mining. These factors are pressurizing firm to become agile and stay in the competition.
- Stringent regulations: Today, the chemical industry is witnessing strict regulations right from manufacturing, labeling, and handling to the supply and storage of their end products. These regulatory fluctuations are driving leading firms to migrate toward the cloud to meet the mandates of the governments.
To address these challenges mentioned above, it is essential for ceramic coating manufacturers to utilize product segmentation solutions. Product segmentation solutions help firms devise robust segmentation strategies to meet the preferred traits of respective markets. These solutions also assist companies in profiling the right customers and channel their resources and efforts accordingly.