From concrete to a flooring solution: Selling a commodity that isn’t – A case study from Holcim Mexico
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.
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.
Holcim (Old name), Construction and Engineering
2013 - 2014
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
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