MS2- BUILDING A STRONG BRAND AND MARKET STRATEGY · MARKETS New Markets Existing Markets Existing...

Precast Show 2019

NPCA 1

precast.org/education

MS2- BUILDING A STRONG BRAND AND MARKET STRATEGY

Brian Miller, PE, MBA, LEED AP

GCP Applied Technologies


WHY ARE SOME COMPANIES MORE SUCCESSFUL?

• They have a plan

• They build a strong Brand

• They have alignment and can execute well

Sounds Easy, Right?


BUILDING A BRAND AND STRATEGY

Strategy

Objectives

Tactics

Messaging

Brand

Goals

Marcom and Promotion

Market Share

Market Positioning

Evaluation /Continuous Feedback

Market Research

Segmentation

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WHAT IS A STRATEGY?

• Strategy – A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem

• Defines how we are going to achieve our goals


Goal: Get to the top,

and clear at least 6

colored, bubbles before

you run out of bubbles

Strategy Option A:

Work to clear a path to

keep getting the extra

bubbles. Hope this will

provide enough ammo

to win

Strategy Option B:

Work to clear a path

to the row breakers.

Hope this will move

you to the top before

you run out of ammo


FIRST – WE NEED A GOAL

• A goal is a broad primary outcome.

• A strategy is the approach you take to achieve a goal.

• An objective is a measurable step you take to achieve a strategy, working towards a goal.

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S.M.A.R.T.

SpecificS

M

A

R

T

Measureable

Attainable

Relevant

Time-bound


FIRST – WE NEED A GOAL

• A goal is a broad primary outcome.

• A strategy is the approach you take to achieve a goal.

• An objective is a measurable step you take to achieve a strategy, working towards a goal.

• A tactic is a tool you use in pursuing an objective associated with a strategy.


EXAMPLES OF COMMON BUSINESS GOALS

• Increase Sales Revenue (1.5x in 5 years)

19.0 19.5 20.021.0

22.524.5

27.0

30.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2016 2017 2018 2019 2020 2021 2022 2023

Revenue

$M

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EXAMPLES OF COMMON BUSINESS GOALS

• Increase Sales Revenue (1.5x in 5 years)

• Increase Net Profit (3% pts)

19.0 19.5 20.021.0

22.524.5

27.0

30.0

8.0% 8.0% 8.1%8.3% 8.8% 9.4%

10.2%11.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2016 2017 2018 2019 2020 2021 2022 2023

Revenue Net Margin

$M


GOALS

Increase Sales Revenue • Two levers: Customers and Products

• Gain Market Share

Market Share - the portion of a market that you control/sell to. (precast sales / total potential sales (TPS) in a specific segment, or market.

Sales = $20,000TPS = $100,000

= 0.2 x 100 = 20%


MARKET SHARE

What if the total potential sales for your product were less than the total market?

Strategic Relative Market (SRM) = identifies what portion of the market is eligible for you to sell to.

Sales = $20,000TPS = $75,000

= 0.267 x 100 = 26.7%

Total market = $100,000 x 0.75 = $75,000

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GOALS

Increase Sales Revenue • Two levers: Customers and Products

• Gain Market Share • Gain new customers• Sell more to existing customers

• Sell New Products

Increase Net Profit• Externally: price• Internally: costs


STRATEGY (ANSOFF MATRIX)

Market Penetration

DiversificationMarket

Development

Product

Development

PRODUCTS

MA

RK

ET

S

New

Markets

Existing M

arkets

New ProductsExisting Products

Product/Location:

Precast Pipe in IL

Customer:

Commercial

Contractor


STRATEGY (APPLIED TO AMAZON)

Market Penetration

Machines learning,

data, etc. = User

experience &

Recommendations

Diversification

Media, hardware,

advertising, web

services

Market

Development

From U.S. to 13

countries

Product

Development

From books to

anything (cloths,

shoes, …)

PRODUCTS

MA

RK

ET

S

New

Markets

Existing M

arkets


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EX. THE PLAN

• Goal: Increase revenue by 1.5x in 5 years

How?


EX. THE SITUATION

• Company : Structural precaster in OH (double tees, columns, etc.)

• Market : Parking structures, primary relationships with engineers, some architects


EX. THE PLAN


How?

• Strategy: Increase our market share by expanding into architectural precast

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WHERE DOES THIS FALL ON THE MATRIX?

19

Market Penetration

DiversificationMarket

Development

Product

Development

PRODUCTS

MA

RK

ET

S

New

Markets

Existing M

arkets


Is it a new product?

Is it a new market?


WHERE DO WE START?

Starts with understanding your business environment, your markets, customers, etc.

�Environmental Analysis (e.g. S.W.O.T)�Market Analysis�Competitor Analysis�Customer Analysis

Align with your inherent strengths – develop a sustainable competitive advantage


EX. THE SITUATION

• Company : Structural precaster in OH (double tees, columns, etc.)

• Market : Parking structures, primary relationships with engineers, some architects

• Strengths: a lot of land, new batch plant, good at engineering, leading tech (e.g. BIM)

• Weaknesses : no experience in arch precast, no forms, etc.

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MARKET RESEARCH


Have you purchased furniture?Have you purchased a car?Have you purchased a home?Have you ever relocated?

ARE YOU FAMILIAR WITH MARKET RESEARCH?


Have you purchased furniture?Have you purchased a car?Have you purchased a home?Have you ever relocated?

Market Research – is the gathering of information/data on markets, customers, competitors, etc. which is then used on developing plans, making decisions, pricing, positioning, etc.

ARE YOU FAMILIAR WITH MARKET RESEARCH?

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About your company :• What business are you in?• What are your strengths?• What are your weaknesses?

About the environment :• What are the current and future potential influences from?� Economics (e.g. inflation, credit accessibility)� Politics (e.g. tax laws, tariffs)� Government (e.g. codes, regulations)� Technological (e.g. BIM, IoT)� Social (e.g. lifestyles, cultural)

QUESTIONS YOU SHOULD BE ABLE TO ANSWER


About the market :• What is the size of the market?• Is it growing and why? • What are the trends? Drivers of these trends?• How difficult is it to get into the market?

About your competition :• How many competitors are in my market? • How big are they? • What is their position in the market?



About your customers :

Why is this critical?

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Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. -American Marketing Association

28

WHAT IS MARKETING?


Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. -American Marketing Association

29

WHAT IS MARKETING?

Who determines Value?


About your customers : • What do they value?• What drives their decisions?, What matters most to them? • What is their decision making process?• How is the best way to reach them?• Where is the best place to reach them?• What should I say to them?

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Market Research – is the gathering of information/data on markets, customers, competitors, etc. which is then used on developing plans, making decisions, pricing, positioning, etc.

Primary – specific research for your company, product, etc. (e.g. NPCA Benchmarking Survey)

Secondary – general industry research (e.g. McGraw Hill reports, FMI, Global Insights)

MARKET RESEARCH


Quantitative – provides values such as market size, number of customers, market share – answers how many, who, where, etc…

• Ex. Surveys, data sources (permit offices, Census)

Qualitative - probes reasons, motivators, etc. answers why, how?

• Ex. Focus groups, interviews

1. Which of these provides insight to value?2. Which of these provides insight into the magnitud e

of an opportunity?

MARKET RESEARCH


• Sent large number of people• Typ. more quantitative• Less expensive / person• Easier to execute and manage• Avg. response rate (10-15%)

� Brand recognition/familiarity

� Perceived benefit

� How their investment will pay off – actions taken

� Demographic alignment – targeting

TECHNIQUES – SURVEYS (ELEC., PAPER, ETC.)

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Recommendations:• Should be short, less than 10 min. (10 questions)• Mock up data to see how you will analyze (Closed vs.

open-ended questions)• Test questions to determine interpretation• Incentivize for better results (e.g. gift card to all vs. chance

to win) • Follow-up afterwards- results, what happened, etc.

TECHNIQUES – SURVEYS (ELEC., PAPER, ETC.)


EX. THE SITUATION

• Market : Ohio, building parking structures now, but want to know about architectural precast

• NA Market Size and Growth Rates?• Enclosures =• Architectural Precast =• Growth rate? =

• Ohio• Enclosures =• Architectural Precast =

• Key Decision Maker :


• Smaller group of participants (5-10 people)

• Typ. more qualitative – (explore why)

• More expensive / person� Typically paid to participate (e.g. professionals $250+)

• More work to execute and manage

TECHNIQUES – FOCUS GROUPS

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Recommendations:• Use a trained facilitator• Develop the appropriate mix of target audience• Record interaction (at least the audio) and observe

participants

TECHNIQUES – FOCUS GROUPS


• One-on-one (in-person or via phone)• Typ. more qualitative – (explore why)• Most expensive / per person

� Typically paid to participate (e.g. professionals $150-200)

• More work to execute and manage• Easier to qualify interviewee

Recommendations:• Use a trained researcher• Develop the appropriate list of potential interviewees• Develop discussion guide• Record conversations

TECHNIQUES – INTERVIEWS


TECHNIQUES – QUICK COMPARISON

Reach Type $ Ease

Survey Large Quant. $/person ***

Focus Group Small Qual. $$/person *

Interviews Varies Qual. $$$/person **

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1. Determine what question(s) you want answered

2. Define market/scope

3. Determine if questions are quantitative or qualitative

4. Determine techniques and budgets and start to develop research program

5. Determine action/next steps based on the possible range of results

HOW SHOULD I APPROACH MARKET RESEARCH?



How do we get architects to consider using precast?

EXAMPLE:



2. Define market/scope

3. Determine if questions are quantitative or quali tative

4. Determine techniques and budgets and start todevelop research program

5. Determine action/next steps based on the possiblerange of results

EXAMPLE:

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PCI conducted extensive customer research on architects & engineers

Some key findings:

EXAMPLE – RESEARCH FINDINGS


EX. THE PLAN



• Research:• Driven by energy codes, need for technical

guidance• Enclosures (OH) =• Architectural Precast (OH) =• Which products to focus on?• How do we position ourselves and compete?


EX. THE PLAN - PRODUCTS

Insulated Sandwich Wall Panel

Thin ShellSolid

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DEVELOP THE VALUE PROPOSITION FOR THE PRODUCT

• Accelerated construction

• Minimizes site impact

• Aesthetic versatility

• Resilient• Helps reduce energy usage

• Reduces life cycle costs, etc….

Note: the more you can quantify these, the better!


HOW DO WE POSITION OURSELVES AND COMPETE?

• Branding

• Market Position


BRANDING

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WHAT IS A BRAND?

A Reputation?

A Slogan?

A Logo?

A Color?

A Website? A Tagline?


WHAT IS A BRAND?

• A Brand is a Promise of a Core Value• Its what customers expect from every interaction

with your company (e.g. Southwest)• Think of it as an emotional link between you and

your customer

• People buy products, but they have relationships with Brands.


Brand Promise

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No Brand CommodityLowerPrice

BrandUnique & Valued

HigherPrice

WHY IS A BRAND IMPORTANT?


WHY INVEST IN BRANDING?

• Identifies your products from the competition

• Identifies your key point of differentiation from the competition

• Helps customers make choices by creating a knowledge and familiarity with the attributes of your business and products

• Can increase customers’ preference and willingness to pay more


CORE COMPONENTS OF A BRAND PROMISE

A Brand – must:

• Be Identifiable – resonate with and bring value to the customer

• Be Defensible

• Differentiate you from competitors (your seat on the bus)

Cannot be all things to all people!

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DO YOU SEE A DIFFERENCE?

Chevy Impala Cadillac CT6


DO YOU SEE A DIFFERENCE?

Buick Rivera Oldsmobile Toronado


DIFFERENTIATION

e.g. Schedule vs. Quality

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DON’T LOSE SITE OF YOUR BRAND

High Performance, sports cars


DON’T LOSE SITE OF YOUR BRAND

Does this make sense?


WHEN YOU THINK OF SUVS…

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EVERYTHING MATTERS!

Everything you do either supports or detracts from your brand!


A Brand Must Be Managed To Build Equity

Customer

Touch Points

and

Interactions

TradeshowsProduct

Samples

Business

Cards

WebsiteCustomer

Service

Distributors

Employees Advertising

Voicemail Product

Delivery

Social MediaCalling your

office

Collateral

Accts

Receivable

Subcontractors Uniforms

emails

Packaging


EX. THE PLAN

• What could be our Brand Promise?• Take into account our strengths• What customers value from us• What’s in our DNA

• Ex. Brand Promise -

• What are some ways we can support this?

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MARKET POSITIONING


MARKET POSITIONING

Market positioning - refers to the ability to influence consumer perception regarding a brand or product relative to competitors. The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.

Consider: • Positioning of precast relative to other systems

• Our precast relative to other precasters


AUTO POSITIONING

High Price

Low

Quality

High

Quality

Low Price

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ENCLOSURE SYSTEMS POSITIONING

High Price

Low

Performance

High

Performance

Low Price

Wood Siding

Brick

Stone

Metal Panel

Vinyl Siding

Precast

Glass


MARKET POSITIONING

• Cost Leadership Strategy

• Value Creation Strategy


MARKET POSITIONING – COST LEADERSHIP STRATEGY

Low Cost Producer

• Pricing is key to competitiveness

• Focused on keeping costs low

• Low prices & high volumes

• Broad markets

• Operationally Focused

• High Skills in Manufacturing and Process Control

• Predominantly Bid Work

• Differentiated by some aspect of performance• Quality, speed, reliability, etc.

• Only one in any market

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• Products/Services that offer unique attributes• Customer Segmentation• Value Identification• Premium Pricing• High Skills in Product Development• Strong Sales Skills• Reputation for Innovation• High Focus on Negotiated Work

Market Positioning – Value

Creation Strategy


Cost Leadership Strategy

Value Creation Strategy

Market Positioning

Development of your strategy beyond lowest cost is dependent upon development of your Brand


EX. THE PLAN



• Research:• Driven by energy codes, need for technical

guidance• Enclosures (OH) = $2B/year • Architectural Precast (OH) = $100M/year (5%)

• Products: insulated wall systems

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EX. THE PLAN

• Brand and Market Position:• Brand Promise - to help customers solve tough problems and

optimize their projects• Market Position – Value Creation Approach

• Provide technical expertise• Extract value by providing project-specific, performance design • Not lowest price


MARKET SEGMENTS

Market Segmentation - strategy which involves dividing a broad target market into subsets (e.g. consumers, businesses, or countries) who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.

How can you segment your market?

• Market Segments – where energy performance is critical to customers


POTENTIAL OBJECTIVES

What are some potential objectives under our strate gy?• Hire expertise in architectural precast and enclosure

systems by Q2• Identify equipment we need/develop plan: Q2 • Look for ways to reduce thermal bridging in our products

Q2-Q4• Testing on panels in Q3-Q4• Develop tools for quick energy analysis of a specific project

Q3• Internal training in Q3• Make samples/mock ups in Q3• Develop messaging and marcom plan in Q3-Q4

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POTENTIAL TACTICS

• Hire expertise in architectural precast and enclosure systems by Q2

• Post on Indeed, Industry Career sites, Hire a recruiter, Hire a consultant

• Look for ways to reduce thermal bridging in our products Q2-Q4

• Talk with suppliers, partner with a university

• Testing on panels in Q3-Q4• University partnership, contract with testing lab


POTENTIAL TACTICS

• Develop tools for quick energy analysis of a specific project Q3

• Subcontract, hire in-house expert

• Internal training in Q3• Consultant, in-house expert, suppliers

• Make samples/mock ups in Q3• Cast range samples, build new demo building

• Develop messaging and marcom plan in Q3-Q4• Market research, hire consultant, test messaging, etc..


MARKETING PLAN

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MARKETING PLAN

• Goals • Strategies• TacticsGoal : Raise awareness about our new product lineStrategy : Develop an advertising campaign to raise awarenessTactics : Public relations, digital marketing, engage with local shows


MARKETING PLAN

• Goal : Generate leads

• Strategy : Develop relationships with architects, become a go-to resource so they reach out to us during project conception.

• Use social media, to engage architects on a regular basis and drive them to highly valuable resources/content.

• Drive them to points of in-person interaction such as education sessions, webinars, etc.

• Offer free reviews of projects, where you can help optimize project enclosures.


DEVELOP ASSETS (EXAMPLES)

• Webinars

• Lunch and learns

• Video content – production, installation, product case studies, start with office

• Interviews with customers, users, employees, etc.

• Enclosure analysis tools

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DEVELOP EVALUATION AND FEEDBACK PROCESS

• Customer questioners, employee surveys

• Follow-up interviews with customers after project completion

• Gather energy data on projects

• Monitor warranty claims

• Brand awareness research


FINAL THOUGHTS

• Marketing can help lead to more profitable and efficient sales

• A small investment in Market Research can really pay off

• A Brand is a Promise, of a core value • Be Identifiable and Connect • Defensible• Differentiate

• The better alignment you have within your company (Brand, position, product, employees, customers, etc.), the more successful you can be

• Market your brand, Sell what you market, make and deliver what you sell


QUESTIONS

Brian [email protected]

[email protected]

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MS2- BUILDING A STRONG BRAND AND MARKET STRATEGY

Brian Miller, PE, MBA, LEED AP

GCP Applied Technologies

MS2- BUILDING A STRONG BRAND AND MARKET STRATEGY · MARKETS New Markets Existing Markets Existing...

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