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Chemicals Inc.

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Chemicals Inc.

  1. 1. Chemicals Inc. by Marco Piras
  2. 2. Recommendations • (1) Chemicorp should develop new specialty products targeting the Machinery and Industrial Goods industry. • It is the most profitable segment and the one bringing in the most revenue. • Specialty products are the most profitable and those driving most sales. • And, Chemicorp is losing customers to competitors due to their limited product offering and the lack of specialty products.
  3. 3. The Machinery and Industrial Goods industry is the most attractive segment.
  4. 4. Recommendations • (2) Move the other segments to the top right quadrant of the segment attractiveness matrix: • Develop more premium products for the Paper and Packaging and the Aerospace and Defence industries in order to charge a higher price premium. • Increase sales in the Pharmaceutical and Biotechnology industries by finding larger customers or more customers.
  5. 5. Which products are bringing the most revenue? • Chemical K, H and I (those specifically suited for the paper and packaging industry) are bringing the most revenue
 • Among the standard products that Chemicorp produces, Chemical D and F are generating the most sales.
  6. 6. Which products are generating the most profits? • Chemical K, H and I (those specifically suited for the paper and packaging industry) are those generating the most profits.
 • Among the standard products that Chemicorp produces, Chemical E and F are generating the most profits, followed by Chemical D.
  7. 7. Recommendations • (3) Chemicorp may stop selling Chemical A to the Medical Equipment industry because it’s generating losses (unless it’s driving complementary sales and is a strategic decision). Check % of customers from the Medical Equipment industry using the product. If high, consider alternatives to discontinuing the product. • If competition is bringing prices down, they could explore differentiating the product or possibly acquire competitors. • (4) The new specialty products could be inspired by products like F, G and J that show both above average profitability and above average revenue for the Machinery and Industrial Goods industry.
  8. 8. Which product(s) are driving profits for the most attractive segments? Which ones are generating losses? • Chemical A is generating losses in the Medical Eq. industry • M&I - Top performers: Chemical E, K and H Products with above average profitability
  9. 9. Which products show both high profitability and high sales volumes? • M&I Industry: F, G and J
  10. 10. Appendix
  11. 11. Which product(s) does each market segment buy the most? • Chemical D and E are the most critical for three segments: Aerospace Defense, Biotech, and Machinery and Industrial Goods • Chemical F is the most critical for the Medical Equipment industry • Chemical H, I and K are the most critical for the Paper and Packaging industry (for which they’re developed) • Chemical B, D and E are the most critical for the Pharmaceutical industry
  12. 12. Which segments are spending the most for each product? • Not surprisingly, product H, I and K revenue is coming entirely from the Paper and Packaging industry, for which they’re designed. • Chemical A revenue is also largely driven by the Paper and Packaging industry. • The Pharma industry generates the most sales for chemical B. • The Machinery and Industrial Goods industry together with the Medical Equipment industry are what drives revenue for Chemical C and F. • Chemical D, E and G revenue are generated by the Aerospace and Defense industry as well as the Biotech industry. • The Machinery and Industrial good industry generates the most sales for chemical J.
  13. 13. Which segment(s) suffers seasonality the most? • The Paper and Packaging segment is the most volatile • The least volatile is the Pharmaceuticals segment
  14. 14. What is the geographic distribution of sales for each segment? • A big cluster of Aerospace Defence sales is located on the east coast.

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