Customer segmentation

Some markets are more profitable than others – even for the same product. The attractiveness of a product will differ regionally, impacting the margins that can be achieved.

As part of a comprehensive commercial excellence project, we established that the USA and Brazil were not particularly profitable markets for a certain product. The relative profit margin was spread extremely thinly across all customer segments, in complete contrast to the position in Europe and Asia.

We analyzed the markets more closely and highlighted areas of potential improvement to management. Following this, we developed a specific strategy for each country. Each of these strategies was more closely aligned with the customer needs and less so with the predefined product segmentation.