Terramet has been operating in the non-ferrous metallurgy market for over 12 years and has extensive competence in the wholesale trade. The company’s activities are focused on the sale of aluminum products. Terramet addressed Strategic’s experts to find new opportunities: to develop a new product for export and the domestic market of Ukraine. As part of the project, the Strategic’s team of experts needed to find additional sources for sales growth by finding a competitive product with export potential in non-ferrous metal processing.
Strategic’s experts faced a difficult task: to find a product for processing that has the potential for growth/development in volume and turn it into an assortment matrix.
At the diagnostic stage and strategy sessions, based on the company’s core competencies, Strategic formed a list of hypotheses. Quantitative and qualitative analysis showed the most promising material. We chose the main industries/goods where the selected material is used compared them to determine their market’s possibility. After the analysis, a number of hypotheses about specific products were formed and tested. The hypothesis testing showed that one group of goods falls within the stated product specifications. We selected the group of goods with the most significant potential in terms of sales and profitability. This group of goods was not attractive to the giants of non-ferrous metallurgy and had export potential. We rejected several products as not meeting the stated product specifications.
Within 5.5 months, Strategic, together with the client’s team:
- formed and tested four hypotheses;
- carried out a qualitative check of the demand for an assortment of semi-finished products in the world market;
- identified promising consumer segments;
- created a value proposition for the selected consumer segment;
- formed and defined a business model and business organizational architecture for launching the product to the market.
The project resulted in finding a niche product with export potential and the prospect of transforming into an assortment matrix.
As a result of the project, we obtained:
- a strategic product that meets the project’s criteria and is the basis of the business assortment matrix;
- tested production hypothesis;
- tested team and new team members: their involvement and willingness to “run” further;
- lists of potential customers;
- data on market volumes, target market segments;
- proven margin of the target assortment;
- logistics scheme from suppliers;
- a list of suppliers, and those who we shouldn’t choose;
- proven European market.
The investment will be provided by trading in selected materials.
We obtained the first business results:
- We received requests for test batches from several Ukrainian and Belarusian enterprises
- We organized and developed the logistics of deliveries
- We defined the list of suppliers
- We entered a new market and started the negotiations