Post on 15-Feb-2017
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.
August, 2016 © team steffenhagen consulting 3
Customers say we are one of the best
Marketing & Pricing Consultancies in Germany
Selected References
August, 2016 © team steffenhagen consulting 4
Welcome to our surfshop
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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.
2016 © team steffenhagen consulting 6
Our first surf board:
The Competition Mapping Board
2016 © team steffenhagen consulting 7
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
2016 © team steffenhagen consulting 8
Source: SKP Global Pricing Study 2014
Competition Mapping Board – Objectives
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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.
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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?
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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
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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.
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› 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:
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How it works
Additions
The Competition Mapping Board can be combined with our latest addition to the shop:.
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› 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
Competition Mapping Board: Screenshots
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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 2 13000 6000 8750 12000 10000 14000
Application 1 Europe Customer 3 6400 7500 5555 3000 0 4000
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 2 1200 0 500 400 0 800
Application 1 Asia / Pacific Customer 3 630 0 750 450 0 320
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 1 25000 0 0 0 0 0
Application 2 Europe Customer 2 13000 6000 8750 12000 10000 14000
Application 2 Europe Customer 3 6400 7500 5555 3000 0 4000
Application 2 Europe Customer 4 0 0
Application 2 Europe Customer 5 0 0 0 0 0 0
Application 2 Asia / Pacific Customer 1 500 0 754 950 0 620
Application 2 Asia / Pacific Customer 2 230 0 530 630 0 5890
Application 2 Asia / Pacific Customer 3 0 0 900 1500 0 140
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
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Value & Benefit
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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.
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… which is why we’re here to assist you!
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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
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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
info@steffenhagen-consulting.com
Phone: +49 241-97876-0
Fax: +49 241-97876-10