Initial situation

A medium-sized industrial company, supplying special components for mechanical and plant engineering in the field of rock mills, crushing and screening plants, conveyor systems, and mixing systems for the recycling, cement, waste incineration, and glass industries, with annual sales of around €50 million, has recorded a decline in revenue over the past five years. The company’s main markets are currently Germany, Austria, Switzerland, and Hungary.

Task/Objectives:

The systems used in the production processes of the target industries are subject to heavy wear, making the spare parts and retrofit business highly profitable. The goal now is to displace opportunistic competitors who are not active in the original equipment business but have taken over the spare parts business. By significantly activating the spare parts business, further revenue growth is to be achieved.

Implementation:

The first step is an in-depth country comparison, differentiated by the key industries. We calculate the sales potential and the market exploitation. Based on the results, Hungary is selected for a competitor displacement strategy. A detailed analysis of the existing customer structure is carried out, along with the definition of high-potential target customers. Furthermore, an external-image, market, and opportunity analysis is required with top and target customers in the selected industry. Finally, the competitors are defined who are vulnerable and from whom market shares are to be won. Target customers to be acquired are defined, and an action plan is established.

A key step before final market implementation is the subsequent onboarding of the sales team.

Results:

After about six months of consistent market efforts, the turnaround was achieved. The spare parts business increased significantly. For the full year, instead of an expected revenue decline, growth of 8% was achieved in Hungary.