The confidential client is a family-owned European industrial equipment manufacturing leader with €200M yearly revenue and 1k employees. The firm offers a range of industrial equipment, software and associated specialist services and currently invests in new growth opportunities beyond its core markets.
As a B2B leader in many international industrial markets, such as Northern Europe, Australia and the USA, the client has achieved a premium reputation and brand positioning around reliability, quality and innovation. However, many industrial market segments have become a zero-sum game, characterized by incremental innovation and a relatively stable batch of cash cow product lines for the market leaders.
Attractive growth markets for European industrial players are currently in Brazil, Africa or Asia. Thus, the client made the decision to spur in-organic growth via M&A activities in core markets and to look for growth opportunities in its nascent growth markets, specifically Asia. To execute the growth strategy in Asia, the client engaged Ross Republic to reset its approach to global brand portfolio management and to help the management team develop a new brand architecture.
The project involved major rethinking due to the switch from design-for-value towards design-for-cost targeted at lower-priced product segments with very different buyer and supply chain demands. Thus, in order to support the client in commercializing the new product portfolio in the growth markets, Ross Republic also supported with structuring strategic insights about customer segments and their needs, competitive dynamics and product-price-market fit. This enabled to position a new product concept within the mid-priced market category that was new to the client. Building a flexible brand evolution roadmap further ensured the client can seize market opportunities as they arise.
- How to manage a global portfolio of brands in different price segments, while maintaining a coherent brand positioning?
- How to tailor a new product concept for successfully entering a new mid-priced category?
- How to transfer the brand equity and desirable qualities of the global premium brand?
- How to leverage lean start-up methods for physical B2B products?
- How to find a balance between commercial risk-taking in the new markets without risking the brand reputation in the core markets?
We steered an intensive, educational strategy sprint for the management team, with several pre- engagement points, one wrap-up session and a presentation for the management board.
At the engagement, as the first step, the client’s representatives of the growth market shared key insights of the local target groups as well as competitive environment and market dynamics.
We introduced a new brand portfolio management framework that helps companies to structure global and local brand building activities. The framework also serves as a solid foundation for expanding the business into new product categories or geographical markets.