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· Path to Increased Profits
· Profit Margin Potential Depends on the Competition
Path to Increased Profits
It is now easier to convince customers that you have the best product and convert this lowest total cost of ownership (LTCO) into increased profits. “Most Profitable Market Program” from McIlvaine Company provides a road map to achieve higher prices and margins in the best niches.
Suppliers and media are embracing “Content Marketing” to persuade the customer that the supplier has the best product. Associations and media have created an Industrial Internet of Wisdom (IIoW). Details on competitors, industries, processes, products, and regulations are instantly available. This allows the supplier to validate the lowest total cost of ownership (LTCOV) in each little niche.
Determining the present market, total cost of ownership (TCO), market shares (COMP) and future market (GROWTH) in each Most Profitable Market (MPM) niche is the necessary
foundation of an MPM program. For more information contact Bob Mcilvaine at rmcilvaine@mcilvainecompany.com 847 226 2391
Profit Margin Potential Depends on the Competition
A new program from McIlvaine leverages lowest total cost of ownership validation (LTCOV) to increase profits and sales in the most attractive niches.
http://home.mcilvainecompany.com/index.php/47-news/1661-nr2647
An attractive niche is one where the supplier can persuade customers that he has a better solution than competitors. So the activities of competitors now and in the future need to be assessed.
What is needed? The following questions need to be answered
· Precise definition of the niche in terms of the competitive leadership is important. Is this a process used in multiple industries or is it unique to one industry?
· How big is the market niche now and in the future?
· What are the shares of major participants?
· Why are they leaders?
· How profitable are these niches for the leaders?
Where can the needed information be found?
Analyzing the market shares is challenging and needs to be continuous. McIlvaine has market shares for thousands of companies in its reports on filters, pumps, and valves. This is a good starting point. But it is necessary to segment global shares by industry and product.
McIlvaine can provide these niche shares because of decades of following these markets. There are also some McIlvaine tools available free of charge.
Many thousands Flow and Treat suppliers have been assigned a number. This avoids confusion over name changes or the Chinese language. http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/UnivDB/company_classification.asp
A listing of products for each supplier in each location is displayed at http://www.mcilvainecompany.com/Decision_Tree/subscriber/product/instructions.htm
The definition of the niche can be based on the NAICS code.
http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/DecisiveClass.htm
The advantages for using this code include the ability to identify all the plants in this classification.
One of the ways to analyze market share is to track exhibition activity. Examples of this and queries for specific companies are found at http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/Default.htm
McIlvaine is making a special effort to identify TCO factors and market shares in two industries on a weekly basis.
Power: http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system
Pharmaceuticals:
http://home.mcilvainecompany.com/index.php/databases/83ai-pharma-prospects
For more information on market share analysis or on Most Profitable Market Program contact Bob McIlvaine at 847 226 2391 rmcilvaine@mcilvainecompany.com
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