Specialty chemicals

Challenges for the industry

• Spin-offs, restructuring, mergers and acquisitions among specialty chemical companies have altered the structure of the industry
• Process of breaking up mixed portfolios and spinning off divisions is not yet over
• Strategic focus of the specialty chemical companies is to strengthen their position as global leaders
• Standardization of quality and know-how, high maturity of products, and lack of product differentiation resulted in a fast replacement of suppliers as well as real decrease of prices in recent years
• The current focus of marketing activities of specialty chemical industries is forward integration strategies and backselling/ forward marketing strategies in order to increase the added value of products within the value chain

Consulting services

• Customer bonding techniques in order to build up exit barriers, secure supply price stability, plan pricing, and improve profits.
• Strategic value added analysis of products within the value chain or product groups/division in order to develop a forward integration and backselling marketing and pricing strategy
• Activity profile analysis in order to identify cost reduction potential within the organization and to develop a new customer and industry oriented organizational structure of business units/divisions
• Value based pricing strategies for new and existing products with the focus on price optimization, differentiation, international pricing, pull pricing strategies and channel management strategies

Project examples

Customer bonding strategy -"How to fully exploit customer potentials" Strategic value analysis of a product Branding and pricing strategy for a new product

• Profit optimization and yield management for an integrator
• Development of a new pricing system for a cargo carrier
• Optimization of an entire product portfolio
• Product optimization
• Development of an effective sales force compensation system

Contact
Dr. Eckhard Kucher
Office Bonn, Germany
Phone: ++49 228 98 43-0
Eckhard.Kucher@simon-kucher.com
Dr. Klaus Hilleke
Office Boston, USA
Phone: ++1 617 576 2750
Klaus.Hilleke@simon-kucher.com

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