A world-wide industry leader in the manufacturing of hydraulic, electrical and mechanical products and systems.
The relationship between Bessemer partner Russ Sabo and the client dates back many years. After working on several projects for upstream natural gas companies, Russ presented the client with what seemed a significant opportunity for them in the midstream sector. At that moment, the US energy market was shifting away from reliance on coal and foreign oil toward rapidly increasing domestic supplies of natural gas—due largely to political and consumer pressures in consort with significant advances in hydraulic fracturing technologies and production capabilities. The confluence of increased production and demand signaled an impending boom in midstream infrastructure requirements. Because the client was serving analogous demands within the crude oil market, addressing the needs of the natural gas industry represented a profound opportunity.
Bessemer was commissioned to analyze the true value of the opportunity. Having worked with a variety of clients in upstream gas markets—e.g., drilling and production—Bessemer had significant market data already in hand. Yet to be developed was a detailed understanding of the client's product offerings and how they aligned with the specific natural gas infrastructure requirements.
Bessemer began with a precise evaluation of the product opportunity within each specific natural gas application to pinpoint existing products that could serve the natural gas applications and potential adjacent products that could be developed or acquired. We created forecast models for each product category, taking into account US and Canadian growth rates and potential value ranges based on low, medium, and high adoption scenarios within the market.
After demonstrating the potential of the market, we explored and mapped out various aspects of the market itself and how to enter into it, employing the following procedures:
Voice of Market PLanning: We identified key stakeholders—OEMs, EPC firms and system integrators—and interviewed them directly in the field to understand what drives buying behavior within the market segment. The client was provided audio and video footage of the interviews to see exactly how participants described their daily tasks.
Channel Planning: This procedure detailed how products get to market within the segment and which particular points in the chain influence decision-making.
Influencer Maps & Personas: These maps documented the daily tasks of a value chain member. We took our analysis a step further in describing who truly is the decision-maker within organizations when it comes to purchasing, e.g., engineering, supply chain, or operations. We also created robust “personas” of these members to reveal factors that go into their decision-making process.
Playbook Development: Secondary research was used to determine the largest end-customers. We culled that information into playbooks — a set of one-page summaries of key sales contacts providing info about the company they represent, where they operate and any new or forthcoming projects.
Not being under active contract does not mean we stop thinking of potential opportunities for our long-term clients. In this case, Bessemer alerted the client to a market opportunity they had previously not addressed. They gave us the opportunity to develop a case for investment within the sector and formulate the strategy for doing so. The result was a growth opportunity that will strengthen the client’s business for years to come.