1. Chemicals Inc.
by Marco Piras

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. The Machinery and Industrial Goods
industry is the most attractive segment.

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. 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. 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. 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. 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. Which products show both high
profitability and high sales volumes?
• M&I Industry: F, G and J

10. Appendix

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. 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. Which segment(s) suffers seasonality the
most?
• The Paper and Packaging segment is the most volatile
• The least volatile is the Pharmaceuticals segment

14. What is the geographic distribution of
sales for each segment?
• A big cluster of Aerospace Defence sales is located
on the east coast.