Principia Consulting

Strategy Consulting for Companies
in Materials-Related Industries

Profitable Growth Program

Profitable Growth Program Brochure download
This unique business review promises significant profit improvement within one year, based on analysis, strategic planning, program development and implementation, and establishment of pricing processes and procedures for ongoing improvement.

To compensate for slower growth and eroding margins, many firms cut costs to the bone just to maintain some degree of profitability. However, the key to growing profits, even in a sluggish economy or industry segment, is to focus on revenue drivers, namely price and unit volumes. Our multi-faceted and comprehensive program helps businesses in the materials and related manufactured goods industries unlock new market segments for additional volume, maximize overall margins and increase overall customer satisfaction.

Principia's Profitable Growth Program consists of several stages implemented concurrently or consecutively depending on specific needs and situation.

Typical results from Principia's Profitable Growth Program are 20% to 40% profitability improvement in the first year of implementation.

CASE STUDIES

Segmenting TPE Customers

Nylon Market Segments

Focus on Lawn and Power

Sales Driven Up 45%

Serving Small Fry

Profitable Growth Program:
Expand into Transitional Markets for Thermoplastic Elastomers

Challenge:
As part of its overall strategy to serve the consumer electronics market, a leading supplier of thermoplastic elastomers (TPEs) wanted to determine how to best segment this market.

Principia analyzed the entire TPE market and developed several segmentation strategies that leveraged the unique characteristics of the buying groups. Principia then developed a strategy to focus on the most relevant buyer types, and helped in developing marketing communications targeted at those buyers.

Result:
The Client improved its service to the consumer electronics market by adding an Industry Manager to facilitate more rapid response the fast moving consumer markets.

Profitable Growth Program:
Identify Segments of the Nylon Market for Super Tough Compounds

Challenge:
A major producer of nylon resins and compounds needed to determine market segments in order to target a new super tough compound. The segmentation would help determine the appropriate type and level of marketing resources to apply, and provide an accurate assessment of potential volume for their new product.

Principia developed a market segmentation program that detailed consumption of super tough nylon and directly competitive compounds, then profiled the applications based on performance requirements. Principia pinpointed the applications where the new product offered added value, and identified several processors for our Client to work with jointly on product and applications development.

Result:
The Client established a joint development program with one of the processors, and commercialized the new super tough compound for a range of consumer and industrial applications.

Profitable Growth Program:
Analyze Discrete Customer Types in the Lawn & Power Market

Challenge:
A leading ETP compounder approached the lawn and power market with a portfolio of compounds, but with mixed results. The company required a thorough assessment of the various segments within the market to determine which customer types were suitable marketing targets.

Principia designed a segmentation strategy based on OEM product design principles, and developed a model to determine which customers fit each segment. Five discrete customer types were defined, and two segments were determined to be the best targets.

Result:
The Client gained share of customer within the target segments. The company focused resources on these customers, and reduced the number of development projects that do not reach commercialization.

Profitable Growth Program:
Segment Heavy Truck OEMs to Support Marketing Strategy

Challenge:
A major producer of engineered plastics targeted the heavy truck market, and required insight into the value chain and customer segments.

Principia research revealed the industry structure and dynamics of specification processes for each segment within the industry. Principia evaluated supplier leverage points in the value chain and identified the key segments where their products and capabilities could gain market penetration and generate revenue growth.

Result:
The Client pursued its market strategy based on Principia's analysis and increased sales to the heavy truck market by 45% over two years.

Profitable Growth Program:
Segment the LCP Compound Market by Customer Size

Challenge:
A pioneer in the development of liquid crystal polymers (LCPs) serves a broad array of applications with its products. In response to competition, the company sought to expand its market coverage to include small but growing end users. But who?

Principia developed a market segmentation program based on customer size and growth prospects, which identified and profiled small-lot purchasers of LCPs. Principia then analyzed the Client's sales potential with these accounts.

Result:
The Client determined that few of the small-lot customers are viable marketing targets, and elected to continue its focus on large-volume users.