competition mapping promo presentation

Competition Mapping Board

Aachen, 2016

www.steffenhagen-consulting.com

team steffenhagen consulting

Spin-off of the RWTH Aachen University’s Chair for Corporate Policy and Marketing.

Strict focus on the Chemical/Life Science Industry and Mechanical Engineering.

Specialized in: Strategy – Marketing & Sales Excellence – Pricing – Change Management – Organizational Development and Leadership.

Combining our experience in the areas of morphological psychology and business management: business is people.

Implementation specialists, with down-to-earth and hands-on mentality.

August, 2016 © team steffenhagen consulting 2

Customer Feedback

In 2014 and 2015 “brand eins Wissen und Statista“, a

German business magazine, has carried out surveys with appr.

3,000 top managers of consultancy clients and consultants to

analyze which consultancies can be recommended for which

topics and industries.

Referring to the votes of consultancy clients we are in the

top 1.8 % of German consultancy companies and among

the top marketing and pricing consultants.


Customers say we are one of the best

Marketing & Pricing Consultancies in Germany

Selected References


Welcome to our surfshop

2016 © team steffenhagen consulting 5

The tsc Surfshop

› Pricing is a lot like surfing.

› So far we have focused on providing our customers with strong

pricing capabilities, sharing our experience, creating a

collaborative team spirit instead of silo thinking.

› However, we have to acknowledge that you can’t surf without

a board! As a result, we have decided to open a surf shop.

› From now on, the shop will grow step by step and from time to

time.

› But of course, we will continue to support you with our

consultancy, coaching and training services in the area of

Pricing and other related fields like Organizational

Development, Leadership and Marketing & Sales

Excellence.


Our first surf board:

The Competition Mapping Board


Downward pressure on prices is at an all-time high

› 83 % of companies report that they

face increasing price pressure

› 58 % are currently engaged in a

price war

› 89 % blame their competitors, not

themselves, for starting that price

war


Source: SKP Global Pricing Study 2014

Competition Mapping Board – Objectives


It’s a tool which helps you avoid price wars and price erosion in highly competitive

markets.

With the Competition Mapping Board you will be able to develop appropriate pricing

tactics, e.g.

› when encountering price attacks of aggressive competitors or

› if you want to grow your share with limited risk of starting a negative price spiral.

Competition Mapping allows key hole surgeries instead of massive blood losses when

operating in highly competitive markets.

Price Erosion / Price War

If a medium-sized plastics producer with sales of €100

million decreased their average price by €0.01/kg, this

would result in a €1.5 million decrease in EBIT.


Typical questions from a project example

1. In what fields can we grow our business / increase

margins with calculated risk, including 2nd sourcing

strategy? What are no-go areas?

2. What is the best counter strategy against expanding

players from Asia?

› How big is the actual threat?

› What is their fair share and where?

› How can the threat level be monitored and

cross-checked?

3. What is the best approach towards niche players?


All of those questions can be answered using

our Competition Mapping Board!

What can the board do?

The Competition Mapping Board can:

Support Competitor Pricing decisions

Help you develop a sound pricing strategy

Support implementation of a pricing strategy

Help derive proper pricing tactics in competitive markets

Help understand where and how to increase market share without starting a

price war

Help understand how to react to competitors’ price attacks without initiating

price erosion

Provide a definition of test markets / customers for price balloons


Areas of application

Competition Mapping can be applied in all highly competitive

markets where you face a certain level of concentration.

Even though technically there are no limitations, Competition

Mapping is typically applied

› in oligopolistic markets with a maximum of 5-8 major

competitors and

› when customer concentration has reached a certain level,

e.g. the top 10 (potential) customers in your business

should account for 70 % or more of the demand.

In terms of market structure, Competition Mapping can cope

with any two-dimensional differentiation, e.g. by

› regions and

› product applications / customer industries.

Other two-dimensional segmentations are feasible as well.


› It’s all based on a compelling visualization of market and supply shares for all relevant

market segments (like regions and product application).

› From a market share overview across all segments in one comprehensive view, you can

zoom into each segment to see the supply shares at the most relevant customers.

› New segments or players (customers and competitors) can easily be added.

› The convincing market and supply share visualization helps you to discuss all relevant

options and possible tactics. You will understand competitor-related threats and

opportunities much better. This will be a breakthrough and eye-opener when developing your

pricing strategy and tactics.

› The data that is put in the tool needs to be collected from sales import/export statistics. Even

though it might take a considerable amount of time to create a database (in some cases 3-4

years), this tool helps to put pressure on the data collection process and speed it up.

› Note: The Competition Mapping Board can also be perfectly combined with our

Price & Profit Board:


How it works

Additions

The Competition Mapping Board can be combined with our latest addition to the shop:.


› It uses business-specific data and analyses the

impact of different price – volume – cost

scenarios on your profit

› Helps to derive appropriate pricing strategies

and tactics (incl. “turning points” for price

increases)

› Supports Sales and their self-confidence

› Easy to use incl. a convincing visualization

The “Price & Profit Board”

>>> More information in our Surfshop

https://www.steffenhagen-consulting.com/en/surfshop/price-profit-board/

https://www.steffenhagen-consulting.com/en/surfshop/price-profit-board/

Competition Mapping Board: Screenshots


Application Region Customer - OUR BUSINESS - Compet. B Compet. C Compet. D Compet. E Compet. F

Application 1 North America Customer A 12650 8000 3000 500 1250 9000

Application 1 North America Customer B 1240 0 800 0 0 50

Application 1 North America Customer C 2314 3000 0 2311 0 5000

Application 1 North America Customer D 1000 5000 0 0

Application 1 North America Customer E 1250 50 200 300 0 600

Application 1 North America Customer F 4232 3000 0 5000 0 4000

Application 1 North America Customer G 113 12000 0 12222 1500 3000

Application 1 North America Customer H 455 0 0 285 300 0

Application 1 North America Customer I 7900 0 4000 3500 2750 4000

Application 1 Europe Customer 1 25000 0 0 0 0 0



Application 1 Europe Customer 4 0 0

Application 1 Europe Customer 5 750 0 0

Application 1 Asia / Pacific Customer 1 2400 0 7300 1300 0 500



Application 1 Asia / Pacific Customer 4 65 0 140 250 980

Application 1 ROW Customer A 0 0 0 0 0 12000

Application 1 ROW Customer H 3000 5000 2000 7500 0 4000

Application 1 ROW Customer I 0 5000 0 3000 6000 4000

Application 1 ROW Customer J 2000 0 5000 1250 4000 3000

Application 2 North America Customer A 8500 8000 4200 0 2400 12000

Application 2 North America Customer B 43021 500 800 0 0 0

Application 2 North America Customer C 4500 2700 0 150 3950 4300

Application 2 North America Customer D 200 400 2500 400 0 0

Application 2 North America Customer E 125 50 200 300 200 400

Application 2 North America Customer F 600 700 0 0 0 0

Application 2 North America Customer G 530 10100 0 8400 7200 0

Application 2 North America Customer H 455 70 123 255 300 0

Application 2 North America Customer I 7900 0 4000 3500 2750 4000




Application 2 Europe Customer 4 0 0





Application 2 ROW Customer A 0 0 0 0 0 0

Application 2 ROW Customer H 3000 5000 2000 7500 0 4000

Application 2 ROW Customer I 0 5000 0 3000 6000 4000

Application 2 ROW Customer J 2000 0 5000 1250 4000 3000

Data entry

Segment view

Customer view

Features

› It is made to cope with more-dimensional market

segmentations (e.g. application / industries vs.

geographies)

› Self-contained app, independent from browser

› Works on OS X and Windows

› Easy to use and flexible

› Easy to adapt to different conditions, such as number of

customers, geographies and applications

› Very simple data entry in Excel template with copy & paste

to the tool

› All competition maps ready at the push of a button (instead

of spending days working on Excel and Power Point)

› Zooming in and out

› Easy transfer to PowerPoint and other programs with

snipping tool


Value & Benefit


Invest your time into drawing the right conclusions

for your pricing strategy and tactics instead of

drawing bubble charts!

That’s where you can capture your value.

› Moreover, it can save a fortune by stopping price

erosion and avoiding price wars.

› Compared to self-made (Excel) solutions: Saves

days and weeks – a turnkey solution instead of

endless Excel lists and pie charts.

› Avoids unnecessary frustration.

But please do not forget:

A fool with a tool is still a fool.


… which is why we’re here to assist you!


Invest your time into drawing the right conclusions

for your pricing strategy and tactics instead of

drawing bubble charts!

That’s where you can capture your value.

› In order to make sure that you apply your tool to the best

possible effect, we offer consulting, trainings and

coachings on marketing, strategy, key account

management and pricing.

› During our more than 20 years in the industry we have

developed a variety of processes and methods to support

you with your pricing decisions, optimization and

implementation, always based on your particular business

and requirements.

› If you feel like your company’s pricing strategy could use

some brushing up, do not hesitate to get in touch with us!

Contact


Olaf Lange

Managing Partner

lange@steffenhagen-

consulting.com

Phone: +49 241-97876-24

Mobile: +49 173-2678 600

Dr. Ralf Schmidt

Managing Partner

schmidt@steffenhagen-

consulting.com

Phone: +49 241-97876-12

Mobile: +49 163-2443 047

team steffenhagen consulting GmbH

Theaterstraße 13 | 52062 Aachen |

Germany

www.steffenhagen-consulting.com

[email protected]

Phone: +49 241-97876-0

Fax: +49 241-97876-10

competition mapping promo presentation

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