Case Study

From concrete to a flooring solution: Selling a commodity that isn’t – A case study from Holcim Mexico

10 pages
April 2016
Reference: IMD-7-1718

Problem: A high quality, value-added product (shrinkage-compensating concrete) sold to contractors whose incentive is to save costs, not provide long-term value; limited access to beneficiaries of value (end customer planning department). Solution: Sell directly to “owners” (department responsible for maintenance and follow-on costs) to create demand from the end customer through the contractor by clearly demonstrating value. Key Steps: 1. Make the problem visible for low-visibility item, i.e. sell a solution for a problem perceived as not easy to solve; 2. Generate credible data and insights on value opportunity; 3. Ensure that additional value created is tangible for all stakeholders; 4. Align different stakeholders and units responsible for budgeting decisions around the same action plan.

Learning Objective

Understand what successful strategies can be employed to capture value from innovation in a highly competitive B2B environment where price is the driving factor for purchasing decisions; illustrate key steps taken by the company showcased to transform a commodity business into higher value provision of a customized solution.

Keywords
Value Capture, Floor Covering, Concrete, Innovative Sales Approach, Voice of Customer, Business to Business
Settings
Latin America, Mexico
Holcim (Old name), Construction and Engineering
2013 - 2014
Type
Field Research
Copyright
© 2016
Available Languages
English
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