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
Innovation, Value Capture, Floor Covering, Concrete, Innovative Sales Approach, Voice of Customer, Value Chain, 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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