Construction

Challenges for the industry

For years, only a few traditional German companies dominated this industry. In a market that was comparable to a monopoly market, companies had a lot of leeway in developing their product and price policies. In recent years, however, the industry has undergone a radical change. Since the trend of economic activity in East Germany has decreased, the market has been suffering from overcapacities. In addition, foreign competitors have been offering their products on the German market, possibly due to the unified European market and guidelines.

At the same time, the distribution structures for construction products are changing dramatically. At the retail level, a permanent concentration process has been noticeable for years. This process has led to a shake up in the balance of power in distribution. Furthermore, manufacturers and retailers are having to confront the challenges posed by e-commerce. All this has led to the reorganization of distribution and increasing competitive pressure which focuses attention on customer-oriented pricing and product policy.

Project example

We will support you in finding solutions to critical issues concerning segmentation/positioning, customer loyalty and satisfaction, product policy, pricing and distribution - on a national and international level. In many cases, especially where large customer groups are concerned, this is done with the help of European market surveys, personal interviews and competition analyses.

The challenges described above, which are common in many areas of the construction industry, have led us to address the following issues:

Solutions through Consulting Services

The right marketing decisions must be made in order to operate successfully in this highly competitive market. Perceived customer value plays an even greater role here leading to many important questions. Some of the key issues to consider will be:

• Designing and positioning of a brand
• Creation and positioning of a second brand or product line
• Revenue management
• Growth strategies, e.g. by developing new business fields
• Identification of optimal country-specific prices and a new pricing corridor
• Analysis and reorganization of distribution channels
• Optimization of discount and condition systems
• Investigation of customer requirements at different levels of the distribution chain
• Potential for improvement in customer relations / customer satisfaction / customer loyalty

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