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  • Sectors: Building

Case Studies

Competitive Intelligence and Performance Benchmark in the Thailand Cement Industry

A joint venture between a foreign and a local Thai public company.

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Issue

The firm had launched several strategic initiatives in the past 3 years and wanted to assess the impact of its actions in the Thai market. The foreign management that took over the JV 3 years before, had launched several commercial and marketing actions and acquired another cement company. Management wanted to have a clear view of the impact of these actions on the customer perception of the company, as well as on dealer and distributor's satisfaction. It was required to assess the current and future market trends, customer perceptions in both B2B projects and retail, understand channel feedback on working with our client as Principal, analyze raw material supply, demand, and price, perform an in-depth benchmark of competitors' strengths and weaknesses as well as a pricing strategy analysis.


Approach

Our consultants interviewed face to face the whole echo system (contractors, distributors, dealers, etc) of our client in 5 regions across Thailand. We also interviewed directly competitors and logistics /3PL companies to better understand the logistics cost structure of each cement company as cost delivery analysis was a key component of our pricing analysis. The result of the analysis was a good mix of qualitative customer insights highlighting the progress done by our client in the past 3 years as well as some things to improve. It was necessary to perform such analysis at a regional level as customer perception, competitors strengths, cost competitiveness differed from regions to regions.


Solution

Solidiance had a team of four composed of a PM and 3 consultants and analysts. The project lasted 10 weeks with a very granular on the ground market investigation. We used a mix of qualitative and quantitative data at a regional level to assess our client performance and positioning against the competition. We had very concrete facts to back up our conclusions and recommend possible measures for improvement.


Engagement ROI

Our analysis was an eye opener for our client. It was rewarding for him and his team to see some significant signs of progress made over time and acknowledged by their customers. At the same, some issues our client thought were fixed were still hampering its commercial success in some parts of Thailand. On the logistics services, we offered great best practice learning from competitors that our client could replicate to improve its offering. We set cost objectives to pursue based on what competitors had achieved. It was a very useful exercise for our client to help his commercial team to set new goals for the following year.