Despite the recent Brexit concerns and political uncertainties, the global manufacturing space is moving towards digitization to create new operating models and improve their targeted investments. Also, with the recovery in the oil prices, the industrial manufacturing space is designing tools and equipment to improve the efficiency, costs, and performance of the factories. To sustain themselves in this competitive space, it becomes vital for leading business organizations to develop technology platforms that can help them in meeting the customers’ expectations. With a considerable number of manufacturing industries, China and the US are expected to hold the majority of shares in the global manufacturing sector. Although the manufacturing space is witnessing promising growth owing to the relentless growth of technology, several factors will influence the growth of industrial equipment space. These include:
Product development and innovation: The relentless growth of technology and innovations are forcing companies to adapt to new technologies to keep up with the competitors. Also, with the rising competition in the manufacturing space, industrial equipment manufacturers need to become more structured in their approach to manage innovations while catering to the consumers demand. Leading organizations should also implement procedures to streamline their product ideas and innovations.
Regulations and traceability: Like other sectors, the industrial equipment manufacturing space faces increasing regulations and compliance measures. The regulations can be in the form of safety to waste management and manufacturers need to ensure a complete visibility in their operations. Also, certain companies producing medical devices need to ascertain with the certain compliance regulations before reaching out to the target audience.
Manufacturing skill gap: With the current innovations and technologies in the manufacturing space, the baby boomers are facing difficulties in coping with the required skills and experience. The employees reaching the retirement age should ensure that the skill sets are passed to the younger generation.
To address these challenges and target the industrial equipment manufacturing space based on the user requirements, leading organization are utilizing a market segmentation strategy. The market segmentation solution aims at understanding customers and segmenting their product portfolios accordingly. Market segmentation also helps organizations segment markets based on the average prices and subsequently enhance profits.
The Business Challenge
- The Client: A leading industrial equipment manufacturer
- Size: >$ 60 million in revenue
- Area of Engagement: Market segmentation
A renowned industrial equipment manufacturer with offices spread globally wanted to characterize the market into groups and segments and personalize their marketing campaigns to target potential customers individually. The client wanted to profile the potential customer segments and efficiently allocate their time, money, and other resources in a cost-effective manner. In addition, with the help of a market segmentation strategy, the client wanted to seek ways to segment the customers based on their needs, wants, and demands and design a marketing mix that precisely matches their expectations. The primary concern for the industrial equipment manufacturer was to eliminate the bottlenecks and generate better returns on their marketing campaigns.
Want more information about our market segmentation study?
To profile the profitable segments and deliver personalized offerings to the customers, the market segmentation experts at Infiniti carried out extensive research. The research methodology comprised of interviews and discussions with prominent stakeholders in the industrial equipment manufacturing space. Furthermore, to design a marketing mix to comply with the regulations, the experts also compiled information from secondary sources such as trade shows, company presentations, and government regulatory bodies.
The Solution Benefits and the Business Impact
The market segmentation solution offered by Infiniti helped the client determine the market trends and segment the market based on variables such as geography, demography, and psychographics. The solution also sought ways to divide the market into sub-segments with a similar taste, demand, and preference. Moreover, the solution also brought into limelight the priorities from the end-user segments and accordingly refined their marketing models to meet the growing demands.
The future of the manufacturing space will be marked by innovations in terms of machinery, software, and information technology. Organizations will leverage data and analytics to upgrade their technical capabilities. Also, the end-user segments can utilize real-time monitoring capabilities to determine the maintenance needs.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the manufacturing industry