A leading services player was experiencing stagnant growth. Our charter was to help them re-examine their markets and identify new platforms for growth.
The company had traditionally viewed their market as comprising of three key segments. Our analysis suggested that, in reality, the market had evolved into 17 different sub-segments. Each of these sub-segments had distinct characteristics, and one could no longer treat them uniformly. The consumer opportunity, buying behaviour, service requirements and growth trends in each of these had evolved significantly. Our client had been focussing on the more mature parts of the market, and was consequently finding its growth constrained. However, there were several untapped market opportunities, which were sizable, and provided large growth avenues.
The company re-aligned its strategy to focus on the growth segments and redrew its product, sales and pricingstructure for the same. In the first full year after the changes were implemented, the client achieved 22% growth, driven in large part by the new segments. They made deep inroads into previously ignored segments and reduced their segment dependence dramatically.