Profitable Possibilities: Products and Services
Custom Market Studies
Several Services Available To Help Understand Market Segmentation
Understanding a particular market segment requires a detailed knowledge of the size, dynamics and latest trends of that marketplace.
Power Systems Research has a long history of market segmentation studies used by the world’s leading corporations in the power products industry. Power Systems Research maintains several industry-leading databases covering a vast range of global markets for power products. This dynamic data source is a base reference for us to use in creating extensive market studies.
The understanding of the industry is crucial to building market strategies and developing a competitive position. With our in-depth knowledge of these markets, we are uniquely placed to form an independent picture of the industry. Since 1976, Power Systems Research has conducted more than 3,100 studies for the world's leading corporations in the power products and drivetrain industry.
Here is a short list of topics from some of the market studies we have completed:
- North American Alternative Fuel Outlook for Off-Highway Engines
- Component Supplier Image Assessment
- Transmission Cost Structure Analysis
- Diesel Engine Control Technology Outlook
- Market Overview: Compact Diesel Engines
- Market Level Pricing: Compact Utility Engines
- Small Diesel Market Outlook: Marine and Industrial Engines
- Competitive Power Train Pricing
- Market Overview: Market Potential for Diesel Engines in India
- Evaluation of Competitive Reaction to Product Technology
- Customer Satisfaction Portfolio: Industrial Diesel Engines
- Emission Regulations Situation: Marine Diesel Engines
- North American On-Highway Transmission Market Assessment
- Cost Analysis: Compliance with Tier III Diesel Engine Exhaust Emissions
- Analysis on Continuously Variable Transmissions for Off-Highway Applications
Cost Structure Evaluation
Do you understand your competitor's ability to compete in the marketplace? Knowledge of their basic cost structure can give your company a real sustainable advantage in the formulation of pricing strategies. The Power Systems Research team has extensive industry experience and fundamental cost knowledge. We have completed a wide range of cost comparisons for the power products industry.
There are numerous sustainable benefits from employing a cost structure analysis. Cost base evaluations establish fundamental competitiveness of the opposition, which enables intelligent market pricing strategies. Also, knowledge of competitors’ key cost elements provides a useful indication of your own company strengths and weaknesses.
Cost Structure Information Includes:
Comparisons with Industry Norms
Output Relative to Labor Cost, Assets
Structure of Company Cost
Labor Cost Direct/Indirect − Industry Comparisons
Overhead Cost Analysis
Sales and Marketing Costs
Study of Cost basis of Competing Companies
Research and Development
Investment History and Strategy
Insights on Future Investments
Financial Performance Review
A financial performance review can give your company an important comparison against your industry and your competitors. Such a review normally covers aspects of performance that require investigations beyond normal financial reporting. Financial reviews can be packaged in a form that can be integrated into your normal market intelligence system.
Measure the Financial Strength of Industry Rivals
A financial performance review can give you an extra weapon in your intelligence arsenal.
- Gain insights into survivability of industry players.
- Give confidence to your company's business plans.
- Plan market campaigns with increased intelligence of rival's ability to respond.
- Integrate financial performance reviews into your competitor intelligence system to enhance effectiveness of strategic planning.
Financial Analysis Information includes:
- Historical sales revenue and profitability data
- Comparisons of business ratio's in context of other competitor/players
- In-depth analysis of sub business units, usually with some survey investigation
- Research nondevelopment investment history and probable future outlook
- Portfolio/product financial performance analysis to suit individual client needs
- Financial performance rankings of competing company's / industries
Acquisition Screening and Due Diligence
It takes extensive knowledge of key technical and regulatory issues to provide accurate, thorough acquisition due diligence support for the power products industry.
Power Systems Research has a strong history of working on a range of such industry topics and projects. In working with our clients, we identify the potential project parameters and determine if an acquisition is a sensible strategic move, helping them understand the level of risk associated with any purchase.
We have developed and applied many types of risk profiling techniques to assess potential acquisitions. We evaluate the gamut of issues, including competitive forces, technological compatibility, as well as review current-and potential future-regulations and trends.
It is very difficult to be sure that any pricing information that you get is correct. There are various levels - retail, dealer net, OEM etc.- which vary widely. In addition, the level of finish- particularly on assemblies like engines and transmissions- can have a significant impact.
Market pricing information is important. It enables a producer to judge the level of profitability on a new product before committing to production while a consumer can understand his competitors input costs and therefore margin.
Through the years, Power Systems Research has developed and proven a methodology that allows us to produce a representative picture of industry pricing. This is accomplished by using:
- Industry knowledge and contacts
- Understanding of the pricing and discount structures within the Industry
- Specific surveys within the target sector to obtain actual pricing levels
- Comparison of multiple data points and sources to ensure pricing is representative
Example: A Client required the competitive market price of selected off-highway transmissions to large original equipment manufacturers.
- We obtained between 5 and 10 independent prices for each transmission.
- These were normalized for differences in accessories and differences in channel through which the prices were obtained.
- The resultant normalized prices were averaged to produce a market price that a large volume original equipment manufacturer might expect to pay.
As marketing moves away from mass marketing, companies can improve cost-effectiveness of their programs by strategically segmenting and targeting customers. Reaching "everyone”costs money and sends unwanted messages; not every product feature is equally important to every segment. Each segment requires a targeted strategy to address its unique needs, preferences and interests.
Power Systems Research works with leading companies in the industry to understand and define customer insights and to develop strategies that best present that brand's benefits to each segments' unique interests. We assist them in consistently positioning and reinforcing the brand's overall image. Our customers gain greater efficiencies and effectiveness by:
- Focusing on smaller and more profitable segments
- Carefully balancing acquisition and retention
- Determining which customer groups are profitable and which are not
- Narrowing the audience to customers that are most likely to buy a brand
Power Systems' suite of proprietary information tools and extensive market research and database management expertise are essential for helping companies in the industry:
- Profile groups of customers and prospects
- Estimate segments size
- Assess segments profitability
- Increase customer retention