CHEMICALS
The market mechanisms for commodity products, which include primary chemicals, differ from those of other markets by a number of particular features: the products are relatively homogeneous, prices and products are extremely transparent, and there is a marked trend toward consolidation on the demand side.
The priority for suppliers of commodity products therefore lies on developing offerings and services that stand out and are relevant to customers. Consistently aligning the business to customer needs is the key to successfully raising the profile of a company's own performance on the market and striving to achieve above-average margins.
Global competition is pushing the commodity product into the background as the original determinant of price in a number of segments. Services and added value geared toward customer needs are growing in importance and are forming the foundation of new earning logics.
The speed and precision with which these needs are reflected in the spectrum of products and services are becoming crucial competitive differentiators. Established commercialization processes and product strategies need to be realigned and earning logics redefined.
Matters are complicated by the fact that commodity providers need to find suitable strategies to offset the consolidation trend on the demand side in order to avoid becoming dependent on any one customer.
KEYLENS has spent many years successfully supporting clients in commodity industries in taking their commercialization models to the next level. Always with a functional outlook and a precise understanding of the specific situation in the market and company concerned.
Some of the aspects our consultancy focuses on:
- Image building and growth strategies
- Customer segmentation and customer segment strategies
- Sales strategy, processes, and organization
- Customer relationship management
- Value added and service concepts
- New earning logics and pricing concepts
SELECTED KEYLENS PROJECT EXAMPLES
Chemicals manufacturer
CHEMICALS MANUFACTURER
Issue:
Sales strategy for Central Europe
Objective:
Transferring negotiating power in sales away from the customer and back to the manufacturer, and reducing business risk in a volatile commodity market
Results:
- We brought about differentiated customer development based on a new customer management strategy
- Reduced business risk by implementing more targeted adjustment of supply volumes to customers and regions
- Strengthened negotiating power with key accounts by adjusting product programs and reducing dependency
- Initiated a process of change management and created stronger customer focus throughout the entire organization
KEYLENS success levers:
Involvement of all stakeholders in the company (product, production, sales functions, etc.) and rapid embedding of customer management in the organization at the European level
